When an underwriter who tries to prevent a recent offering from dropping below the offering price by placing buy orders slightly above that price. Also, broker for whom at least 75% of trades are stabilizing (i.e. sales following a zero-plus tick and purchases following a zero-minus tick), in accordance with NYSE rules.
The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders follow a plus tick and buy orders a minus tick. Actions a managing underwriter undertake so that the market price does not fall below the public offering price during the offering period.
The syndicate manager is empowered by the members of his group to maintain a bid in the aftermarket at or slightly below the public offering price, thus "stabilizing" the market and giving the syndicate and selling-group members a reasonable chance of successfully disposing of their allocations. This practice is a legal exception to the manipulation practices outlawed by the Securities and Exchange Act of 1934.
The ability of an underwriter of a new issue to act in the secondary market to maintain the price of a security at the highest independent bid price.
This refers to the process of the lead manager ensuring that members of the syndicate support the stock price after the IPO begins trading to ensure that the IPO doesn't fall below its offer price.
Intervention in the market by a managing underwriter in order to keep the market price from falling below the public offering price.
A practice used in connection with certain public offerings in which an underwriter posts an open bid for securities at a stated price, or purchases such securities in the secondary market if the offering price declines below a certain level. Stabilization is intended to maintain an orderly market for the securities during the underwriting and to prevent sharp fluctuations in the market for the securities due simply to supply factors. Generally, this is a practice seen in the equity market.
After the IPO begins trading, the lead manager may decide that the members of the syndicate need to support the stock price with aftermarket purchases, and they make a stabilizing bid to ensure that the IPO doesn't fall below its offer price.
When an underwriter of a new issue acts in the secondary market to maintain the price of a security at the original new issue offering price. To accomplish this, the underwriter would enter a bid in the secondary market that is at or slightly below the new issue offering price.
Stabilization purchases tobacco that does not exceed the federal supported price at auction. A-B~~~~~~ H-K~ L-M~ N-O~ P-Q~~~~ U-Z