Quiet Period
There are two time windows commonly referred to as "quiet periods" during an IPO's history. The first and the one linked above is the period of time following the filing of the company's S-1 but before SEC staff declare the registration statement effective. During this time, issuers, company insiders, analysts, and other parties are legally restricted in their ability to discuss or promote the upcoming IPO (U.S. Securities and Exchange Commission, 2005).
The other "quiet period" refers to a period of 40 calendar days following an IPO's first day of public trading. During this time, insiders and any underwriters involved in the IPO are restricted from issuing any earnings forecasts or research reports for the company. Regulatory changes enacted by the SEC as part of the Global Settlement enlarged the "quiet period" from 25 days to 40 days on July 9, 2002. When the quiet period is over, generally the underwriters will initiate research coverage on the firm. Additionally, the NASDAQ and NYSE have approved a rule mandating a 10-day quiet period after a Secondary Offering and a 15-day quiet period both before and after expiration of a "lock-up agreement" for a securities offering.
Read more about this topic: Initial Public Offering
Famous quotes containing the words quiet and/or period:
“The extra worry began it—on the
Blue blue mountain—she never set foot
And then and there. Meanwhile the host
Mourned her quiet tenure. They all stayed chatting.
No one did much about eating.”
—John Ashbery (b. 1927)
“It is as if, to every period of history, there corresponded a privileged age and a particular division of human life: “youth” is the privileged age of the seventeenth century, childhood of the nineteenth, adolescence of the twentieth.”
—Philippe Ariés (20th century)