Regulation M: Stabilization and Distribution

What this video covers

• How the one-day restricted period requires both the $100,000 ADTV threshold and the $25 million public float threshold, and why missing either trips the five-day period
• The exact timing of the distribution notice to FINRA and why documenting the ADTV and public float math matters more than the conclusion
• Why distribution participants have broader exceptions than issuers and their affiliates, and how passive market making is off-limits on the issuer side
• The stabilization bid ceiling as the lower of offering price or highest current independent bid, and why the offering price is a hard cap
• The single-bid-per-market rule, prospectus disclosure requirement, and NASDAQ stabilizing bid flag for permitted legal manipulation
• How penalty bids recoup selling concessions from syndicate members whose customers flip shares, and why this discourages allocations to flippers
• Why the 90-day syndicate settlement clock starts on the syndicate settlement date, not the closing date, and how stabilization losses hit the final account