The process whereby an underwriting syndicate steps in to buy back securities to prevent a larger price drop than that which has already occurred is called:
A) market stabilization
B) price normalization
C) dollar cost averaging
D) best efforts

Question

Quizplus · Accepted Answer

Market stabilization is the process of preventing a larger decline in the price of securities by temporarily buying back securities from the market. This is often used by underwriting syndicates to maintain stability in the market and prevent large price drops.

The Process Whereby an Underwriting Syndicate Steps in to Buy