Underwriters of initial public offerings (IPO) and seasoned equity offerings (SEO) often engage in price stabilization to prevent significant declines in the market after a new security is issued. This paper examines the aftermarket price dynamics of companies offering SEOs to understand the motivations for stabilization and the characteristics of firms that have their securities stabilized. We find that the likelihood of price stabilization is negatively related to the magnitude of the offer price, the amount of trading and the volatility of transaction returns, and positively related to the holding period return between the time when the offer is registered and when the offer is priced.