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.

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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. During this time, the issuers and underwriters are limited in their ability to promote the company or its stock. The purpose of the quiet period is to prevent companies from using the excitement of their IPO to artificially inflate the price of their stock before the market has had a chance to establish a fair value.

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