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

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

Dateiendungen und Dateiformate

Gesponsert von:

SearchCompliance

  • PCI DSS (Payment Card Industry Data Security Standard)

    The Payment Card Industry Data Security Standard (PCI DSS) is a widely accepted set of policies and procedures intended to ...

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

  • compliance framework

    A compliance framework is a structured set of guidelines that details an organization's processes for maintaining accordance with...

SearchSecurity

  • Trojan horse (computing)

    In computing, a Trojan horse is a program downloaded and installed on a computer that appears harmless, but is, in fact, ...

  • identity theft

    Identity theft, also known as identity fraud, is a crime in which an imposter obtains key pieces of personally identifiable ...

  • DNS over HTTPS (DoH)

    DNS over HTTPS (DoH) is a relatively new protocol that encrypts domain name system traffic by passing DNS queries through a ...

SearchHealthIT

  • telemedicine (telehealth)

    Telemedicine is the remote delivery of healthcare services, such as health assessments or consultations, over the ...

  • Project Nightingale

    Project Nightingale is a controversial partnership between Google and Ascension, the second largest health system in the United ...

  • medical practice management (MPM) software

    Medical practice management (MPM) software is a collection of computerized services used by healthcare professionals and ...

SearchDisasterRecovery

SearchStorage

  • M.2 SSD

    An M.2 SSD is a solid-state drive (SSD) that conforms to a computer industry specification and is used in internally mounted ...

  • kilobyte (KB or Kbyte)

    A kilobyte (KB or Kbyte) is a unit of measurement for computer memory or data storage used by mathematics and computer science ...

  • virtual memory

    Virtual memory is a memory management capability of an operating system (OS) that uses hardware and software to allow a computer ...

Close