Quiet period
Encyclopedia
Quiet period has "historically [meant], a quiet period of time extended from the time a company
files a registration statement
with the SEC
until SEC staff declared the registration statement effective. During that period, the federal securities laws limited what information a company and related parties can release to the public."
Under the rules of the Securities Act of 1933
, as modified June 29, 2005, electronic communications, including electronic road shows and information located on or hyperlink
ed to an issuer's website
are also governed. The rules changes of June 29, 2005 also included various changes which "liberalize permitted offering activity and communications to allow more information" for certain qualifying organizations.
In business finance, a waiting period (or quiet period) is the time in which a company making an IPO must be silent about it, so as not to inflate the value of the stock artificially
. It is also called the cooling-off period.
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
files a registration statement
SEC filing
An SEC filing is a financial statement or other formal document submitted to the U.S. Securities and Exchange Commission . Public companies, certain insiders, and broker-dealers are required to make regular SEC filings. Investors and financial professionals rely on these filings for information...
with the SEC
United States Securities and Exchange Commission
The U.S. Securities and Exchange Commission is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States...
until SEC staff declared the registration statement effective. During that period, the federal securities laws limited what information a company and related parties can release to the public."
Under the rules of the Securities Act of 1933
Securities Act of 1933
Congress enacted the Securities Act of 1933 , in the aftermath of the stock market crash of 1929 and during the ensuing Great Depression...
, as modified June 29, 2005, electronic communications, including electronic road shows and information located on or hyperlink
Hyperlink
In computing, a hyperlink is a reference to data that the reader can directly follow, or that is followed automatically. A hyperlink points to a whole document or to a specific element within a document. Hypertext is text with hyperlinks...
ed to an issuer's website
Website
A website, also written as Web site, web site, or simply site, is a collection of related web pages containing images, videos or other digital assets. A website is hosted on at least one web server, accessible via a network such as the Internet or a private local area network through an Internet...
are also governed. The rules changes of June 29, 2005 also included various changes which "liberalize permitted offering activity and communications to allow more information" for certain qualifying organizations.
In business finance, a waiting period (or quiet period) is the time in which a company making an IPO must be silent about it, so as not to inflate the value of the stock artificially
Watered stock
Watered stock is an asset with an artificially-inflated value. The term is most commonly used to refer to a form of securities fraud common under older corporate laws that placed a heavy emphasis upon the par value of stock.- Origin of term :...
. It is also called the cooling-off period.