CLOSE PERIOD Meaning and
Definition
-
A close period refers to a specific time frame during which insiders of a publicly traded company are prohibited from trading its securities. Also known as a closed period, it is a legally mandated period that typically occurs before and after the public release of important financial information or other material developments that could affect the company's stock price. The close period imposes a blackout or quiet period on insiders, meaning they are restricted from buying or selling the company's stocks or other securities during this time.
The close period is intended to prevent any potential insider trading or the misuse of privileged information by company executives or significant shareholders. By temporarily restricting trading activities, it helps maintain the integrity of the capital markets and ensures fairness for all investors. During the close period, insiders may have access to confidential information or have insights into the financial performance or strategic plans of the company that are not yet available to the general public. By refraining from trading during this period, insiders avoid any suspicion of utilizing their privileged information to gain an unfair advantage in the market.
The length of a close period may vary depending on legal requirements or company policies. It typically starts a certain number of days before the release of financial results, earnings reports, or any material announcement, and often continues for a few days or weeks after the information has been made public.
Common Misspellings for CLOSE PERIOD
- xlose period
- vlose period
- flose period
- dlose period
- ckose period
- cpose period
- coose period
- clise period
- clkse period
- cllse period
- clpse period
- cl0se period
- cl9se period
- cloae period
- cloze period
- cloxe period
- clode period
- cloee period
- clowe period
- closw period
Infographic
Add the infographic to your website:
