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What is the Quiet Period

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What is the Quiet Period

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Once a company registers to go public, Securities and Exchange Commission rules prohibit a company from making written public announcements of a promotional nature until 25 days after the initial public offering takes place. The quiet period rules are meant to prevent companies from hyping their stock and thereby protect investors. The SEC is currently considering a revamp of the quiet period regulations that would offer companies greater latitude in their quiet period pronouncements.

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