Browse Definitions:
Definition

blackout period

Contributor(s): Ivy Wigmore

A blackout period is a duration of time when access to something usually available is prohibited. 

In a financial context, a blackout period is a duration of time when a company's executives and/or employees who are privy to inside information are restricted from buying or selling any corporate securities. The purpose of blackout periods is to prevent insider trading based on information that is not available to the general public. 

Many companies have regular blackout periods in conjunction with fiscal quarter and fiscal year earnings reporting because corporate insiders are in possession of information prior to its public disclosure. A company may also enforce a blackout period when news of some event or potential event will not immediately be made public. Examples of such events are mergers and acquisitions (M&A), technological advances and corporate reorganization, among a great number of other possibilities. 

Trading blackout periods are mandated by the company in question, rather than the Securities and Exchange Commission (SEC) or some other organization that regulates trading-related activities. However, the SEC does prohibit insider trading during blackout periods. 

A related term, quiet period, refers to similar periods of time, related to similar events, that prohibit corporate insiders from selectively divulging information to some investors before that information has been made public. 

This was last updated in November 2013

Continue Reading About blackout period

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • risk map (risk heat map)

    A risk map, also known as a risk heat map, is a data visualization tool for communicating specific risks an organization faces.

  • internal audit (IA)

    An internal audit (IA) is an organizational initiative to monitor and analyze its own business operations in order to determine ...

  • pure risk (absolute risk)

    Pure risk, also called absolute risk, is a category of threat that is beyond human control and has only one possible outcome if ...

SearchSecurity

  • FIDO (Fast Identity Online)

    FIDO (Fast ID Online) is a set of technology-agnostic security specifications for strong authentication. FIDO is developed by the...

  • cryptanalysis

    Cryptanalysis is the study of ciphertext, ciphers and cryptosystems with the aim of understanding how they work and finding and ...

  • Trojan horse (computing)

    In computing, a Trojan horse is a program that appears harmless, but is, in fact, malicious.

SearchHealthIT

SearchDisasterRecovery

  • business continuity and disaster recovery (BCDR)

    Business continuity and disaster recovery (BCDR) are closely related practices that describe an organization's preparation for ...

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

SearchStorage

  • cloud storage provider

    A cloud storage provider, also known as a managed service provider (MSP), is a company that offers organizations and individuals ...

  • personal cloud storage (PCS)

    Personal cloud storage (PCS) enables users to store data, photos, music, videos and other files on a local network-attached ...

  • cloud SLA (cloud service-level agreement)

    A cloud SLA (cloud service-level agreement) is an agreement between a cloud service provider and a customer that ensures a ...

SearchSolidStateStorage

  • hybrid hard disk drive (HDD)

    A hybrid hard disk drive is an electromechanical spinning hard disk that contains some amount of NAND Flash memory.

Close