Cooling-off period


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Cooling-off period

The period of time between the filing of a preliminary prospectus with the Securities and Exchange Commission and the actual public offering of the securities.

Cooling-Off Period

An SEC rule mandating that several days transpire between the filing of a new issue's prospectus and the actual offering of the issue. This allows potential buyers and the seller to have a final chance to investigate the new issue and attempt to determine if there will be any previously unforeseen problems. The cooling off period is usually 20 days, but the SEC may change that for individual offerings at its discretion. It is also called the waiting period.

cooling-off period

The required waiting period between the time a firm files a registration statement for a new security issue with the SEC and the time the securities actually can be issued. The cooling-off period is usually 20 days, although the SEC may alter it for individual issues. Also called twenty-day period, waiting period. See also effective date.

Cooling-off period.

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.

References in periodicals archive ?
This cooling-off period will give people a chance to step back from a deadline, consider their positions, and get back to the table.
And MEPs have responded with a massive 674 to 16 vote endorsing plans to tightencontract termsand cooling-off periods for people considering "timeshare-like products".
The Sarbanes-Oxley Act of 2002 (SOA) requires a one-year cooling-off period before publicly held companies may hire their auditor's former employees or owners for key positions.
In practice, the length of the cooling-off period can vary.
The Car Buyer's Bill of Rights, authored by Assemblywoman Cindy Montanez, D-San Fernando, would allow used-car buyers to have a two-day cooling-off period in which they could return a vehicle for any reason.
This cooling-off period is also being characterized by a slower rate of change than at any previous time since the early 1990s.
We have had to take a bit of time out and have a bit of a cooling-off period," said Klass.
It also wants to introduce a 14-day cooling-off period for consumers who enter into a credit agreement, however it is taken out.
The existing cooling-off period is three years and applies only to former employees of the listed company.
The cooling-off period allows customers to cancel contracts within a certain period of time with no penalties or conditions.