Articles on: Investment Glossary

Cooling-Off Period

The period in a new stock issue beginning with the filing date of the registration statement and ending on the effective date. According to federal regulations, it must be a minimum of twenty days. During the cooling-off period, the issuing corporation and underwriters will prepare and distribute a preliminary prospectus, blue-sky the issue, hold a due diligence meeting, and prepare the final prospectus.

Updated on: 24/04/2023

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