stabilization period

Stabilization Period

The period between the offering of a new issue and the time at which it is fully distributed. During the stabilization period, underwriters serve as counterparties on the secondary market to help keep the price of the new issue at or above the offering price on the primary market. If the market price falls below the offering price, the underwriters will be unable to place the issue with investors because interested parties will buy at the lower price available on the secondary market. After the issue is fully distributed, there are no more shares or bonds to sell on the primary market and the stabilization period ends. See also: Price stabilization.

stabilization period

The time elapsing between the offering of a security issue for sale and its final distribution, during which the underwriter enters the secondary market in order to stabilize the price of the security. The underwriter attempts to keep the secondary market price of the security from falling below the offering price. Also called price stabilization.
References in periodicals archive ?
Tenders are invited for Survey Soil testing Design Supply and Const Installation Commissioning of 3 MLD STP at Tappa Distt Barnala based on any suitable sustainable and proven technology inclu other appurtenant works on turnkey basis as per DNIT inclu O and M for a period of 60 months after stabilization period of 3 months or more
GLYX-13 Phase 2b Study Design The GLYX-13 Phase 2b study was divided into three parts: a six-week adaptive-dose treatment stabilization period, followed by a six-week randomized withdrawal period and a four-week wash-out period.
Research: Investigators carried out a 12-week study, including a four-week stabilization period, in 67 patients with baseline LDL cholesterol ranging from 161-186 mg/dL.
The perceived decline in the American family is vanishing and the '90s represents a stabilization period,'' added the bureau's Ken Bryson.
An interim loan may, for example, need a substantial interest reserve because the property is not yet cash-flowing enough to cover interest expense, but is projected to do so after a stabilization period.
Costs incurred during the stabilization period that exceed the cap will be deferred and collected over the years 2010-2012.
During the post-conversion stabilization period, which began in mid-December, the company has experienced some system downtime which will negatively impact sales growth in the fiscal fourth quarter which ends January 31, 1995.
Tenders are invited for Construction of 3 MLD Sewage Treatment Plant Balance work at Raman Mandi based on MBBR Technology including OandM for a period of 60 months after stabilization period of 3 month as per DNIT.
China Netcom" or the "Company") (SEHK: 906, NYSE: CN), a leading telecommunications company in China and the Asia-Pacific region, today announced that the stabilization period in connection with the global offering ended on December 9th, 2004.
Testing and Commissioning of Mechanical, Electrical & Instrumentation Works, along with Operation and Maintenance for 24 months subsequent to stabilization period of 3 months on turnkey basis complete in all respects at Maharshi Dayanand University, Rohtak,
In addition, the project's projected financial indicators are weak, with unprofitable operations through the stabilization period and a high debt burden; however, the financial ratios demonstrated by the Buckingham are consistent with other start up CCRCs.