The market stabilization function usually
A) is performed by the issuing company.
B) lasts six to nine months.
C) provides price support for the stock during the distribution period.
D) is illegal.

Question

Quizplus · Accepted Answer

The market stabilization function provides price support for the stock during the distribution period. It is typically performed by underwriters under SEC regulation and may last up to 30 days after the stock's initial public offering (IPO). It is not illegal as long as it is done according to SEC rules.

The Market Stabilization Function Usually