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1 FINANCE MCQS

The period between the issuance of shares and the filing of registration with the Securities and Exchange Commission (SEC) is called what?

  • Filing period
  • Quiet period
  • Silence period
  • Noise period
Correct Answer: B. Quiet period

Detailed Explanation

In securities regulation, the quiet period is the time between the initial offering of shares and the official filing of registration with the Securities and Exchange Commission (SEC). During this period, companies and underwriters are restricted from making public statements or promotional activities that could be seen as influencing the market. This rule ensures fairness and prevents misleading information before the registration is fully reviewed. Options like filing period, silence period, or noise period are not official regulatory terms, making quiet period the correct answer.

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