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Rule 105: Difference between revisions
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[[Rule 105]] of [[Regulation M]] under the [[Securities Exchange | [[Rule 105]] of [[Regulation M]] under the [[Securities Exchange Act of 1934]] generally prohibits buying shares in a secondary offering if the buyer has shorted the securities within the restricted period (usually the 5 days before the pricing of the offering). It is designed to prevent people from manipulating the price of secondary offerings by shorting the securities being offered shortly before the secondary offering is priced. | ||
It seeks to prevent this activity by making it illegal to buy [[shares]] in the offering if the buyer has sold the [[securities]] short during the shorter of either: | It seeks to prevent this activity by making it illegal to buy [[shares]] in the offering if the buyer has sold the [[securities]] short during the shorter of either: | ||