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Market stabilization is the action by the managing investment banker to keep the

ID: 2648243 • Letter: M

Question

Market stabilization

is the action by the managing investment banker to keep the price of newly issued securities from falling below the issue price to the public.

usually lasts 2-3 days but can last up to 30 days if a security is difficult to distribute.

cannot always keep prices of securities from falling

A.

is the action by the managing investment banker to keep the price of newly issued securities from falling below the issue price to the public.

B.

usually lasts 2-3 days but can last up to 30 days if a security is difficult to distribute.

C.

cannot always keep prices of securities from falling

Explanation / Answer

is the action by the managing investment banker to keep the price of newly issued securities from falling below the issue price to the public.

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