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In the financial industry, a cooling-off period applies when a new issue is being brought to market. During this time, also known as the quiet period, investment bankers and underwriters aren't permitted to discuss the issue with the public.
In the consumer world, during a cooling-off period, you can cancel your obligation to purchase a product or take a loan without penalty if you change your mind.
Different kinds of transactions are governed by different cooling-off rules. For example, one federal rule allows you to cancel home improvement loans and second mortgages within three days of signing.
Another gives you three days to return purchases you make at places other than a merchant's usual place of business, such as at a trade show.
The law governing your cooling-off rights, sometimes known as buyers' remorse rules, is included in the fine print on any agreement you sign.