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Finance: What is a Cooling-Off Period? 2 Views

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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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00:00
Finance allah shmoop what is a cooling off period Yeah
00:07
not twenty minutes you spend in your respective corners after
00:10
a big fight although that sort of cooling off period
00:13
can result in less broken glass where in the world
00:16
of finance a cooling off period refers to something else

00:20
hot buyers need chill in time If you decide to
00:23
buy that ferrari for example you might want to cool
00:26
off a little before you actually fork over the four
00:29
hundred grand like you got all excited by the sales
00:32
person and then well you need a little bit of
00:33
time Cool and think about whether you really want to
00:35
spend that kind of money on a car if you're
00:38
a company and you filed with the sec to sell
00:40
bonds or stocks well there is a legal twenty day
00:43
cooling off period during this time your company can't advertise
00:48
and you have tio you know behave yourself When the
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twenty days have passed the sec will issue a release
00:55
so that the securities can be sold to the public
00:57
it's kind of like the brady bill which imposed a
00:59
mandatory waiting period between when you want to buy a
01:02
gun And when you can actually use it careful there 00:01:06.696 --> [endTime] did
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