Does anyone know the definition of a quiet period is dealing with an IPO?


IPO
Bertie asks:

Can mutual fund managers buy the stock if it is in the quiet period?

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2 Comments to "Does anyone know the definition of a quiet period is dealing with an IPO?"

  1. Emiko

    Yes a mutual fund portfolio manager can purchase the security. The quiet period involves communications promoting the IPO by the underwriters. This means promoting research reports, road shows. The actual definition simply put is: ” refers to a period of 40 calendar days following an IPO’s first day of public trading. During this time, insiders and any underwriters involved in the IPO, are restricted from issuing any earnings forecasts or research reports for the company. ”

    A mutual fund manager would not be involved (for the most part) with the underwriter, and they are not an insider either.

  2. Jeanne

    Yes mutual fund managers can buy the stock any time it is offered for sale
    They are the ones who get most of the stock
    Wall street analyst don’t comment on stocks when they are in the registration process
    and do not give ratings on ipo’s until the quiet period ends
    25 calendar days after the stock starts trading
    There are no earnings estimates from wall street during the quiet period
    it’s a conflict of interest thing
    it’s only concerns analyst not mutual fund managers
    company officers are also limited about what they can say in regards to the company’s prospects during the quiet period

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