stabilization period

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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 ?
Fitch views favorably EGP's manageable development portfolio and its relatively short construction time frame and stabilization periods, which provide Fitch with some comfort that EGP could either scale back or control the timing of development starts, especially during periods of considerable economic uncertainty.
In particular, Fitch notes the granularity of the construction portfolio and its relatively short construction and stabilization periods, which provide Fitch with some assurance that PLD could throttle back its development program within a reasonable period of time, especially during periods punctuated by severe economic stress.
SCA), continues to grow at a steady clip but with stabilization periods, which are longer than in the U.
Lease-up is pursued in the joint venture to shield the company from the drag on earnings created by the long stabilization periods for storage facilities (18-24 months).
This non-cash charge reflects the estimated impact of the previously announced foreclosure on the Rincon Center property located in San Francisco and the reduction in projected future cash flow from the disposition of the Company's remaining real estate development operation resulting from the change in strategy of holding the properties through the necessary development and stabilization periods to a new strategy of generating short-term liquidity through an accelerated disposition or bulk sale.
This transaction, and the resulting improvement in the company's balance sheet, provides the company with an opportunity to substantially improve liquidity during 1997 and beyond by changing its strategy with respect to certain real estate assets from one of holding them through the necessary development and stabilization periods to a new strategy of putting these properties on the market now.