Finance: What is a Cooling-Off Period?

What is a Cooling-Off Period? The number of days in an IPO between when the prospectus is filed and trading commences is referred to as a `cooling off period.’ Also known as a quiet period, the company issuing the IPO is not allowed to discuss financials or release any other news about the company until after the quiet period is over.

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hot buyers need chill in time If you decide to

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buy that ferrari for example you might want to cool

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off a little before you actually fork over the four

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hundred grand like you got all excited by the sales

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person and then well you need a little bit of

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time Cool and think about whether you really want to

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spend that kind of money on a car if you're

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a company and you filed with the sec to sell

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bonds or stocks well there is a legal twenty day

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cooling off period during this time your company can't advertise

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and you have tio you know behave yourself When the

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twenty days have passed the sec will issue a release

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so that the securities can be sold to the public

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it's kind of like the brady bill which imposed a

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mandatory waiting period between when you want to buy a

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gun And when you can actually use it careful there 00:01:06.696 --> [endTime] did