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.