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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Cooling

Definition:

If you're a big spender, you want a cooling off period before you spend big bux. Lack of a cooling period may be why you've made some impulse buys in the past (like the leopard print pantsuit or that trip to Vegas you swore you'd never talk about). When a company publishes an offering memorandum outlining its plans to sell bonds or stock, there is a cooling off period required by law; it prevents investors from rushing in to buy without thinking.