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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Ryan Deckert, then a Democratic state senator, said he believed the law was always intended to be a blanket cooling-off period before any paid lobbying.
The results could assist state boards in determining whether the presence or absence of a cooling-off period influences perceptions of independence.
In practice, the length of the cooling-off period can vary.
She said the introduction of a 14-day cooling-off period for all credit agreements was in line with requirements under the draft European Consumer Credit Directive.
The court said it would hold a hearing the week of Oct 14 to determine whether to grant a full 80-day cooling-off period. This is the first time a president has attempted to institute a cooling-off period since 1978.
A disbanded health-food company that was based in Tokyo's Minato Ward kept about 1.57 billion yen from customers by failing to honor a stipulated ''cooling-off period'' in contracts, during which customers could cancel and get their money back without penalty, sources close to the case said Sunday.
Online book retailers and have agreed to include delivery charges in refunds that they provide to UK customers who return goods within the legal cooling-off period.
Ben-Eliezer said an agreed 7-day test period for a ceasefire would not start until there was "total quiet", adding that any violence during the 6-week "cooling-off period" would send the clock "back to the beginning of the six weeks".
But in recent weeks, it has named William Burns as Middle East special envoy, sent CIA director George Tenet to negotiate an Israeli-Palestinian ceasefire, and has now dispatched Powell to the area try to convert the shaky truce into a cooling-off period leading to new peace talks.
* Allow a cooling-off period. Give a day of grace to let everyone calm down and rethink their positions.
There are clearly times when the best policy is to do nothing - a cooling-off period can be an effective tool for managing residents' aggression.
A cooling-off period should restore the objectivity of both coaches and players.