Canadian Securities Course (CSC) Practice Exam 2025 – The Comprehensive All-in-One Guide to Exam Success!

Question: 1 / 400

What is the purpose of an "After-market stabilization" arrangement in the context of newly issued stocks?

To limit the trading of the new stocks

To promote insider trading

To support the offer price of newly issued stock in the secondary market

An "After-market stabilization" arrangement is a mechanism used to support the offer price of newly issued stock in the secondary market. This means it helps to keep the price of the stock stable and prevent it from dropping too quickly after it is initially issued. Option A is incorrect as it does not refer to any trading limits. Option B is incorrect as insider trading is illegal and should not be promoted. Option D is incorrect as it does not mention any restriction on stockholders from selling their shares.

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To prevent stockholders from selling their shares

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