quietperiod

Quiet period is a term used in finance and corporate communications to describe a window during which certain participants restrict public statements about a company or its securities. The aim is to prevent market mispricing by promotional commentary during sensitive events, such as an initial public offering (IPO) or major corporate announcements.

In the IPO context, the quiet period typically begins when a company files a registration statement with the securities regulator and ends after a defined period following the offering price. During this time, company executives, underwriters, and others limit forward-looking comments and publicity beyond information disclosed in the registration materials. The duration and scope vary by jurisdiction and offering type; in many markets the period lasts several weeks, with some post-offering restrictions that apply to communications by underwriters and analysts.

Quiet periods may also occur around earnings announcements or other material events, during which management speaks more narrowly and in accordance with disclosure rules. The exact rules are set by regulators and exchanges and can differ significantly between countries. Violations can trigger penalties, regulatory actions, or reputational harm. The concept is distinct from a lock-up period, which restricts insiders from selling shares for a set time after an offering.