Washington -- In an effort to prevent a replay of the initial public offering practices used by Wall Street during the tech boom before the bubble burst, the Securities and Exchange Commission has proposed a stringent set of rules to stop underwriters from artificially pumping up share demand during initial public offerings.
In a unanimous 5-0 vote, the SEC commissioners have put out for comment a proposal that would ban strategies such as "laddering," where IPO investors agree to purchase additional shares at a later time in order to maintain a higher share price following the offering.
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