Which of the following is NOT a characteristic of market stabilization?
A) It may last up to 30 days.
B) It may be difficult to achieve.
C) It is often illegal.
D) It can protect the underwriting syndicate as well as investors.

Question

Quizplus · Accepted Answer

Market stabilization is a legally permitted activity in which an underwriting syndicate may bid for and purchase newly issued shares of a company in order to stabilize the market price of those shares. Therefore, it is not illegal. The other options are all characteristics of market stabilization.

Which of the Following Is NOT a Characteristic of Market