gun jumping

Gun jumping

In the context of securities trading, refers to trading in a security on the basis of information that has not been made available to the public. The illegal solicitation of buy orders in an underwriting before completion and finalization of Securities and Exchange Commission registration. Also see front running.

Gun Jumping

The act or practice of soliciting orders for a new issue of a security before it has been registered with the SEC, or before its registration has been approved. Gun jumping amounts to soliciting orders outside the SEC's regulation and is, as such, illegal. Engaging in gun jumping can delay the actual issue of the security.

gun jumping

1. The trading in a security before inside information has been released to the public.
2. Solicitation of orders for a new security underwriting before the SEC has approved the registration statement.
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References in periodicals archive ?
Unfortunately, the ABA's gun jumping doesn't end with its misreading of the Federal Credit Union Act.
Subsequent to that May 2nd FMC Newsroom release, there have been numerous reports and articles in the press that said the FMC held that the Tripartite Agreement would have violated federal antitrust laws including gun jumping provisions and premature combining of the agreement parties business operations.
That would surely be more of a beacon to the world for Wales than some bloke with a fake gun jumping about the Assembly in front of a camera.
However, the gun jumping concerns arise when these clauses allow for the buyer to exercise some form of operational control over the business activities of the target prior to closing.
For antitrust practitioners and corporate and in-house counsel, this book examines theories distinguishing between lawful premerger coordination and unlawful gun jumping in the US, the existing law, and positions of enforcement agencies concerning preconsummation activities of the merging parties.
In addition, there are some directors and officers exposures, including securities fraud, material misstatements about a company or product, gun jumping and selective disclosure, he said.