This contribution explains the factors to be taken into account by management and its subtitles when considering an offer of securities during a period of lockdown. We focus in particular on U.S. companies that are already subject to SEC reporting obligations and are up to date with their notifications – IPO companies, companies that are not covered by SEC reports, and companies that remain in their SEC bids have additional things to consider. Management information. The study of current management information should generally include careful diligence, centered on “known knowledge” and “known unknowns,” and an attempt to quantify “known unknowns” is generally essential. “Unknown unknowns” cannot, of course, be quantified, and it is for this reason that all parties to the transaction must understand and accept that there is a certain level of risk – both reputation and law – that cannot be excluded when making an offer of securities before the official disclosure of the company`s results. Some companies have systems (for example. B flash reports) to track performance every week, even daily, and understand very well what happens almost in real time. Other companies may experience a larger delay before negative information or a negative trend emerges for management — “unknown strangers” would be a problem. In a financial context, a blackout period is a period during which executives and/or employees familiar with inside information are excluded from the purchase or sale of corporate securities. The purpose of blackout periods is to prevent insider trading on the basis of information that is not available to the general public. Stock market analysts are also subject to blackout periods around the launch of an IPO.
Until now, analysts were prohibited from publishing IPOs in advance and until 40 days later. But those rules were relaxed in 2015. Today, only analysts who have participated in companies as interpreters or traders are prohibited from publishing research or making public appearances as part of an IPO, only 10 days after the closing of the offer. A prohibition period is a term that often refers to a temporary period during which access is restricted or denied. This term often refers to contracts, directives and business activities. For example, if a political party is unable to campaign for a specified period before an election, it is said that it is subject to a period of deadlock. A warning is appropriate — this message provides a flashing yellow light, not a green light. In many cases, the best way to plan the offer will be after the 10-Q or 10-K bid. However, at a time when investors` sensitivity to new issues is changing rapidly, a company and its sub-managers may decide that the balance of thinking promotes faster marketing.