The 40-day period following an IPO during which the SEC places restrictions on the public communications of the issuer is known as the _____ period.
A)silent
B)quiet
C)lockup
D)green
E)red

Question

Quizplus · Accepted Answer

The 40-day period following an IPO during which the SEC places restrictions on the public communications of the issuer is known as the "quiet period." This is to prevent issuers from hyping up their stock and disseminating potentially misleading information to the public. It allows for a more level playing field among investors. The other options, "silent," "lockup," "green," and "red," do not refer to this specific period of time.

The 40-Day Period Following an IPO During Which the SEC