According to Regulation M, which of the following statements about stabilization bids is correct?

1. AStabilization bids can be placed above the public offering price if necessary to prevent a price drop.
2. BA stabilization bid must be placed at least 5% below the offering price.
3. CThe issuer must always approve all stabilization bids in writing.
4. DA stabilization bid cannot exceed the public offering price and must be properly disclosed in the prospectus.✓ Correct answer

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