waiting period

noun

Definition of waiting period 

: a stated period in various forms of insurance (as accident and health, workmen's compensation and unemployment or idleness insurance) after the beginning of disability during which no benefits are paid

Love words?

You must — there are over 200,000 words in our free online dictionary, but you are looking for one that’s only in the Merriam-Webster Unabridged Dictionary.

Start your free trial today and get unlimited access to America's largest dictionary, with:

  • More than 250,000 words that aren't in our free dictionary
  • Expanded definitions, etymologies, and usage notes
  • Advanced search features
  • Ad free!

Learn More about waiting period

Share waiting period

Statistics for waiting period

Look-up Popularity

Keep scrolling for more

More Definitions for waiting period

waiting period

noun

Financial Definition of waiting period

What It Is

The waiting period refers to the time period between a company filing a registration statement with the US Securities and Exchange Commission (SEC) and the SEC declaring that statement to be effective. This is also referred to as the "quiet period."

How It Works

Under the SEC rules, once a company makes its SEC registration filing for its initial public offering, it must not release information about its activities or related parties to the public until the SEC approves the registration for the offering.  The SEC interprets this rule broadly, even including board members, management, and employees talking about the company.

In 2005, the SEC changed many provisions of the waiting period and now allows companies to continue to publish information about themselves electronically and to continue to publish and report company activities through normal company networks.

Why It Matters

The waiting period precedes the introduction of a company into the capital market.  During that time, the amount of public exposure and hype must be minimized to prevent any interference with SEC efforts to evaluate the company's filings. The release of any information may cause investors to "jump the gun" on valuations and expectations for the company.  The SEC's intention is to create a level playing field for all investors in the capital market, ensuring that all have the same information about the company when it goes out for sale on the market.

Source: Investing Answers

Comments on waiting period

What made you want to look up waiting period? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

required by fashion, etiquette, or custom

Get Word of the Day daily email!

Test Your Vocabulary

Great Scrabble Words—A Quiz

  • scrabble-tiles-that-read-scrabble-quiz
  • Which of the following Q-without-U words means the number five in cards or dice?
How Strong Is Your Vocabulary?

Test your vocabulary with our 10-question quiz!

TAKE THE QUIZ
Add Diction

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!