Capital MarketsQuestion 316 of 398
The period after a registration statement is filed but before it becomes effective, during which no sales may be finalized, is called the:
a.Quiet resolution
b.Cooling-off period
c.Blackout window
d.Lock-up expiration
Explanation
The cooling-off period is the interval, typically a minimum of 20 days, between filing the registration statement and its effective date. During this time, the offering may not be sold or advertised beyond permitted materials such as a red herring and tombstone, and no final sales occur.
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