Series 79 practice questioneasyIPO Process
What is the 'cooling-off period' in the context of an IPO?
- AThe period between filing the registration statement and its effective date✓ Correct answer
- BThe period after the IPO when insiders cannot sell shares
- CThe period after the roadshow before pricing
- DThe period when the SEC reviews the company's financial statements
Explanation
Why A — The period between filing the registration statement and its effective date
The waiting period runs from filing until effectiveness. Although Section 8(a) has a 20-day default framework, the SEC may accelerate effectiveness, so 20 days is not an absolute minimum.
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