OT, RE: Quiet periods
There is SEC mandated quiet period related to earnings.
If there was, there would be no way for a company to warn.
When a company refers to a quiet period, it is entirely self-imposed. Occasionally, a spokesperson who is unaware of the logic states that the quiet period is SEC mandated. This is not the case. The spokesperson is merely using the SEC as an excuse not to comment. Heck, most companies don't even use quiet periods anymore. Gateway and Oracle are two that come to mind.
The only part of quiet periods that is connected to an SEC mandate is the quiet period surrounding an IPO. Even there, the quiet period is not mandated by the SEC. The company is obligated to avoid any promotion of an IPO while the issue is in registration. Many securities attorneys take this to an extreme and just shut off the flow of all information in order not to cross swords with the SEC. A quiet period is thus perhaps advisable prior to an IPO, but is still not mandated. |
