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Non-Tech : Meet Gene, a NASDAQ Market Maker -- Ignore unavailable to you. Want to Upgrade?

To: gene_the_mm who wrote (504)	8/7/2000 11:37:57 PM
From: LPS5	Respond to of 1426

Hey Gene (& George), Trading, not investment banking, is my area of experience, but I can answer this one. Generally when an issuer files a registration statement with the SEC, in 20 days the offering can begin; this date would be the "effective date." (One exception is a "shelf offering," but that's not relevant in this example.) The length of the quiet period is based upon the effective date, and describes a period ranging from 40 to 90 days afterwards wherein the issuer and its' associated parties (underwriters, attorneys, etc.) cannot promote or discuss certain issues with the public. On the issue of dealing in new issues, I believe that the general rules are that for some brief period following an offering, an underwriter can stabilize a new issue, but the rules essentially say that the stabilizing bid (a) can't be higher than the offering price, and (b) can't be higher than the highest independent bid. This basically suggests that an underwriter pegging a new offering that's fallen below its' offering price can't ever be alone at the inside bid. If at this inside bid, it must be there with another trading firm, or drop two levels down. The rules also change depending upon whether the issue is trading in its' primary market or on another exchange/on another basis (overseas, etc.) for stabilizing an issue That's what I seem to recall. LPS5