What does the silence period mean for listed companies

Ruixue Mega Year.

Also known as the "waiting period", the "waiting period" begins when a prospective company submits an application for listing with the SEC and ends when the SEC approves the application. Under the U.S. ** Act, which was passed during the Great Depression era, during this period, the statements made by senior executives of public companies and investment banks that work as underwriters on listing issues will be strictly restricted, and public companies will only be able to release information to the public through prospectuses.

The U.S. Securities and Exchange Commission (SEC) proposes to relax the silent period for new listings.

On the morning of October 26 (October 26 Beijing time), the U.S. Securities and Exchange Commission (SEC) approved a proposal to relax the rule that senior executives should not make public comments for weeks before and after a company's IPO (commonly known as the "silence period"), which may be a major change for the first time in 70 years.

The SEC's committee unanimously approved the proposal, which will be open for public comment. The passage of the above proposal is part of a larger plan by the SEC to relax the listing restrictions. If the SEC's proposal is ultimately approved, the listed company can provide more information to investors in the weeks leading up to the listing, including listing updates, interviews with company executives, and "roadshows" to attract more potential investors.

Before voting on the proposal, Alan Beller, director of the SEC's corporate treasury, said at a public meeting: "We are in a time when our existing regulatory framework and regulations are somewhat outdated. Baylor also pointed out to the commissioners of the SEC:

The existing system has led to a freeze in communication between the company and investors. ”

The "Silence Period", also known as the "Waiting Period", begins when a prospective company submits an application for listing with the SEC and ends when the SEC approves the application. Under the U.S. ** Act, which was passed during the Great Depression era, during this period, the statements made by senior executives of public companies and investment banks that work as underwriters on listing issues will be strictly restricted, and public companies will only be able to release information to the public through prospectuses.

However, under the new proposal from the SEC, public boasting of new shares would remain prohibited, and company executives would be held accountable for misleading statements.

This will allow the enterprise to have a buffer stage, and the enterprise may also obtain greater profits, and it is more secure, the specific requirement is to show some proof, as well as show some copies, these are fine.

In fact, the main reason is to conform to the current business situation, and also to make everyone more cautious, that is, some problems and publication of relevant staff will be strictly restricted, and it is not possible to publish at will.

The primary purpose of the quiet period is to protect investors, who have the right and should make investment decisions based on complete and vetted information, i.e. the information in the prospectus; And you shouldn't get the gobble, uncensored gossip.

Requirements: No offer can be made within 30 days before the company submits the registration application on the SEO. An issuer may make a verbal offer, but an issuer cannot make a written offer other than a prospectus.

**After the issuance, the underwriters will not be able to publish the relevant research report for 40 days.

This is to prevent the issuer from doing market-making activities, the company can not have an offer within 30 days when submitting the application, the issuer can make an oral offer, but can not make other written offers, ** 40 days after the issuance is not allowed to release relevant information.

If you think about this state carefully, you're about to make a windfall, and you're still yelling around, for fear that others won't know, isn't it stupid?