http://en.wikipedia.org/wiki/Greenshoe#Risk_to_Investors http://en.wikipedia.org/wiki/Greenshoe#Risk_to_Investors The SEC currently does not require that und

http://en.wikipedia.org/wiki/Greenshoe#Risk_to_Investors http://en.wikipedia.org/wiki/Greenshoe#Risk_to_Investors The SEC currently does not require that underwriters publicly report their short positions nor short-covering transactions. Investors who are unwary of underwriter stabilizing activity who choose to invest in what they perceive to be a stable issue can encounter volatility when the underwriters pause or complete any stabilizing activity. "Cast in the most negative light, price stabilization might be seen as a means of transferring risk to a relatively naïve segment of the investor population." How is this allowed by the SEC?