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

SearchSecurity

  • copyright

    Copyright is a legal term describing ownership of control of the rights to the use and distribution of certain works of creative ...

  • keylogger (keystroke logger or system monitor)

    A keylogger, sometimes called a keystroke logger or system monitor, is a type of surveillance technology used to monitor and ...

  • password

    A password is an unspaced sequence of characters used to determine that a computer user requesting access to a computer system is...

SearchHealthIT

SearchDisasterRecovery

  • 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 ...

  • mass notification system (MNS)

    A mass notification system is a platform that sends one-way messages to inform employees and the public of an emergency.

SearchStorage

  • RAID (redundant array of independent disks)

    RAID (redundant array of independent disks) is a way of storing the same data in different places on multiple hard disks to ...

  • data migration

    Data migration is the process of transferring data between data storage systems, data formats or computer systems.

  • compact disc (CD)

    A compact disc is a portable storage medium that can be used for recording, storing and playing back audio, video and other data ...

SearchSolidStateStorage

  • NVMe (non-volatile memory express)

    NVMe (non-volatile memory express) is a host controller interface and storage protocol to enable a solid-state drive to use the ...

  • SSD RAID (solid-state drive RAID)

    SSD RAID (solid-state drive RAID) is a methodology commonly used to protect data by distributing redundant data blocks across ...

  • Tier 0

    Tier 0 (tier zero) is a level of data storage that is faster, and perhaps more expensive, than any other level in the storage ...

SearchCloudStorage

  • RESTful API

    A RESTful application program interface breaks down a transaction to create a series of small modules, each of which addresses an...

  • cloud storage infrastructure

    Cloud storage infrastructure is the hardware and software framework that supports the computing requirements of a private or ...

  • Zadara VPSA and ZIOS

    Zadara Storage provides block, file or object storage with varying levels of compute and capacity through its ZIOS and VPSA ...

Close