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Biotech / Medical : VD's Model Portfolio & Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: Vector1 who wrote (7094)	9/23/1999 11:44:00 PM
From: aknahow	Respond to of 9719

I don't believe that is true. The prospecti of most secondary offerings allow for stabilization both prior to and after the offering. Thought that setting the final offering price for the prospectus really would be almost impossible without such prior action. Will check with broker/dealer to find out what the actual wording usually is.

To: Vector1 who wrote (7094)	9/24/1999 1:05:00 AM
From: aknahow	Read Replies (1) \| Respond to of 9719

From a secondary offering. Regulation M might show permitted time frame. Will see if I can find it later. The representative has advised us that, under Regulation M under the Securities Act, some persons participating in the offering may engage in transactions, including stabilizing bids, syndicate covering transactions or the imposition of penalty bids, that may have the effect of stabilizing or maintaining the market price of the shares of common stock at a level above that which might otherwise prevail in the open market. - A "stabilizing bid" is a bid for or the purchase of shares of common stock on behalf of the underwriters for the purpose of fixing or maintaining the price of the common stock. 37 <PAGE> 41 - A "syndicate covering transaction" is a bid for or purchase of common stock on behalf of the underwriters to reduce a short position incurred by the underwriters in connection with the offering. - A "penalty bid" is an arrangement permitting the representative to reclaim the selling concession otherwise accruing to an underwriter or syndicate member in connection with the offering if the common stock originally sold by that underwriter or syndicate member is purchased by the representative in a syndicate covering transaction and has therefore not been effectively placed by that underwriter or syndicate member. The representative has advised us that such transactions may be effected on the American Stock Exchange or otherwise and, if commenced, may be discontinued at any time. Neither DuraSwitch nor the underwriters make any representation or prediction as to the effect that the transactions described above may have on the price of the shares.