Market stabilization
A) is the action by the managing investment dealer 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.
D) all of the other answers are correct

Question

Quizplus · Accepted Answer

Market stabilization is the action by the managing investment dealer to keep the price of newly issued securities from falling below the issue price to the public. It usually lasts 2-3 days but can last up to 30 days if a security is difficult to distribute. However, it cannot always keep prices of securities from falling, as market forces such as supply and demand ultimately determine the price of securities. Therefore, all of the other answers are correct.

Market Stabilization