2.8.4.2. Regulation M, Rule 105
Rule 105 tries to curb market manipulation that may artificially lower the value of a follow-on or secondary public offering. The rule prohibits investors from purchasing a security from underwriters and other participants in an offering if they shorted the stock during a restricted period. The restricted period is the shorter of the two following periods:
•The period beginning five business days before the pricing of the security and ending with the pricing of the security
•The period be