What is a Quiet Period?

The quiet period is a period after a business files for the registration of securities with the Securities and Exchange Commission (SEC), when it is not allowed to make promotional statements to the public. During this period, no new information can be offered to the public than is not already contained within the registration statement. For example, no member of the management team can express an opinion about the value of the business. When a business has filed a stock registration statement with the SEC and then goes on a road show to present the company to investors, it cannot mention anything to attendees other than what was included in the registration statement. If this rule is violated, the SEC may delay a stock offering.

Quiet periods are also imposed between the end of a reporting quarter or year and when the related financial results are issued to the public. This is done in order to keep from giving advance notice to the investment community, which might otherwise use it to the detriment of the general public.