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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Cooling-Off Period

Definition:

Hot buyers need chillin' time. If you decide to buy that Ferrari, for example, you might want to cool off a little, big spender, before you fork over the $200,000.

If you're a company and you file with the SEC to sell bonds or stocks, there is a legal 20 day cooling off period. During this time, your company can't advertise and you have to behave yourself. When the 20 days have passed, the SEC will issue a "release" so that the securities can be sold to the public.