Which family members are considered restricted persons who cannot invest in an IPO?

The correct answer identifies the family members who are considered restricted persons in the context of investing in an Initial Public Offering (IPO). According to securities regulations, restricted persons are typically defined as specific close relatives who are not permitted to participate in the IPO offerings due to potential conflicts of interest and to maintain fair and orderly markets.

The definition of restricted persons includes immediate family members such as spouses, siblings, children, parents, and in-laws. This restriction aims to prevent individuals with close relationships to the underwriters or issuers of the securities from receiving preferential access to shares, which could be seen as an unfair advantage over the general investing public.

In contrast, other relatives such as cousins, aunts, uncles, grandparents, grandchildren, friends, and business partners are not classified as restricted persons. This is because they do not have the same level of familial closeness as those listed in the correct option and therefore are less likely to have conflicts of interest regarding the underwriting or issuance of the IPO shares. Such distinctions are crucial in maintaining the integrity of the IPO process.