cooling off period

Also found in: Dictionary, Legal, Idioms, Wikipedia.

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

A time period within which a person may change his or her mind about a contractual agreement and cancel it without penalty.The right must be granted within the contract itself or by virtue of consumer protection statutes because it does not exist at common law.

References in periodicals archive ?
If, at the end of the cooling off period, we have not reached an agreement with NBCU, we will have up to five days to formally request arbitration.
Also, no member can now hold the posts of secretary general and treasurer for more than two consecutive terms ( eight years), but can contest for the post of president subsequently, without a cooling off period.
This cooling off period basically means that within seven days of receiving their contract or cancellation notice, consumers can reconsider it and cancel if they are unsure - without penalty.
The purpose of the cooling off period is to enable an investor to reflect on whether he or she has made the right decision and no charges should be incurred if the contract is cancelled within the time limit.
He added, ``The cooling off period applies to most cash contracts over pounds 35 which have been entered into during an unsolicited visit by a trader.
It introduces an obligation to provide consumers with comprehensive information before a contract is concluded, and recognises consumers' right to withdraw from the contract during a fourteen day cooling-off period, without any penalty or need to provide a reason - in the case of life insurance and individual pensions, the cooling off period will be thirty days.
If a timeshare contract is signed, there is a cooling off period of 14 days to cancel it at no cost and be refunded any money paid.
The changes, which come in to force at the end of the year, mean that once a customer signs up with a new supplier, the switch will take place three days after the statutory 14-day cooling off period.
Use the cooling off period to re examine your policy and cancel it if you are in any doubt.
The National Mediation Board is expected to announce an exact strike deadline this week, which will start a 30-day cooling off period before the pilots can strike, The Associated Press reported.