What is required of a person participating in the distribution of a security under Regulation M?

Under Regulation M, participants in the distribution of a security must notify FINRA of the restricted period. This regulation aims to prevent manipulation of the market during the distribution process. The restricted period generally refers to a timeframe during which certain trading activities are limited to maintain fair pricing of the security being distributed.

Notifying FINRA ensures that the regulatory body is aware of the distribution activities and can monitor compliance with the regulations, which helps to uphold market integrity. This notification is crucial because it establishes clear boundaries on trading behavior for those involved in the distribution, thereby protecting investors and the overall market.

The other options, while related to securities regulation, do not pertain specifically to the requirements set forth by Regulation M concerning distribution participants. Notably, requirements such as notifying the SEC about an offering or filing a FORM D relate to different aspects of securities offerings, while providing a prospectus is a requirement under the Securities Act of 1933 for certain transactions but does not specifically fall under Regulation M guidelines for distribution activities.