Series 79 practice questionmediumStabilization
Under Regulation M, at what price may the lead underwriter enter stabilizing bids in the aftermarket?
- AAt any price above the offering price to support positive performance
- BOnly at the previous day's closing price
- CAt exactly 10% below the offering price
- DLesser of offering price or last independent trade✓ Correct answer
Explanation
Why D — Lesser of offering price or last independent trade
Rule 104's initial stabilizing-price ceiling is generally the lesser of the offering price and the last independent transaction price.
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