Final answer:
The restriction period under Rule 101 of Regulation M varies and is designed to prevent market manipulation around the time of a securities offering. It starts days before the security is priced and ends with the distribution completion.
Step-by-step explanation:
A covered security under Rule 101 of Regulation M can be subject to a restriction period in relation to securities offerings. Regulation M is designed to prevent market manipulation, specifically providing a set of rules that govern the activities of underwriters, issuers, selling security holders, and others in connection with a securities offering. Rule 101 primarily deals with restricting the purchase or the bidding for a security that is the subject of a distribution in order to stabilize its market price.
The restriction period can vary depending on factors such as the security's market liquidity and the size of the offering. It generally starts a certain number of days before the security is priced and ends upon the completion of the distribution. Restriction periods are critical to maintaining fair and orderly markets during the distribution of a new or secondary offering of a security.