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Price stabilisation

Permitted purchases of a newly placed security by the organiser during the first days of trading, smoothing sharp moves in the quote.

How to read the number

It explains why a share holds steadier immediately after a placement than a security with no trading history otherwise would.

When the metric lies

This is a temporary and pre-disclosed procedure, not a property of the security: the market's first honest opinion appears once it ends.

Also known as: price stabilisation

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