Accounting

Cooling-Off Period

May 30, 2022
Derivatives

Extension Option

May 30, 2022

Share

A quiet period of time that precedes the release of a new security or the window of time that follows a sale of a new security during which the buyer can cancel such a transaction. Exchange authorities define the duration of a cooling off period as per market internal policies or best practices (e.g., 20 day periods). For individual offerings, the duration may be changed based on a case by case review.

This period is also called a waiting period.

Leave a Reply

Related Tags

All Topics in the Letter