They ranged from a sweeping investigation into initial public offerings underwritten by major brokerage firms, like Credit Suisse First Boston, to the commission's pursuit of what it calls boiler-room operations That's not all.

Both companies went public in initial offerings underwritten by Wakefield in 1987.

The warnings in the prospectus, however, were not enough to scare away buyers of the offering, underwritten by Montgomery Securities at $36 a share, and the stock climbed to $41.375 by the end of the year.

The offering, underwritten by Goldman Sachs, was priced late Wednesday at $15, and shares began trading yesterday at $24.75.

Of 32 initial public offerings underwritten by D. H. Blair since the beginning of 1994, about one-third now trade for less than half their initial offering price.

AllAdvantage planned an initial public offering of stock in early 2000, underwritten by investment banker Frank Quattrone of the firm Credit Suisse First Boston.

With its public offering, underwritten by Bear Stearns & Company, drkoop.com hopes to raise $50 million, much of it for an advertising blitz later this year.

"The implications were staggering," because of the huge number of public offerings underwritten by major investment banks, Mr. Lovell said, recalling the conversations with Mr. Sirota.

The offering, underwritten by Monroe Parker Securities of Purchase, N.Y., is a classic example of a hot penny stock offering.

Stratton brokers will also be forbidden to sell shares in initial public offerings underwritten by a host of other brokerage houses that employ former Stratton brokers or are otherwise on states' regulatory radar screens.