Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Quiet Filing

What it is:

A quiet filing is an IPO filing that intentionally excludes certain information.

How it works (Example):

When a company is getting ready to go public, it files an SEC Form S-1, which is also called a prospectus. The Securities Act of 1933 requires the prospectus to fully disclose all material information about the issuer, including a description of the issuer’s business, the name and addresses of key company officers, the salaries and business histories of each officer, the ownership positions of each officer, the company’s capitalization, an explanation of how it will use the proceeds from the offering, and descriptions of any legal proceedings the company is involved in.

In a quiet filing, the company sends the form to the SEC but leaves much of it blank and then provides the details separately via amendments.

Why it Matters:

Quiet filings buy time. They allow an issuer to file the proper paperwork with the SEC but also give it time to delay revealing key information. In many cases, the filer just doesn't know the information; in other cases, the underwriters and the issuer want to get the ball rolling but haven't resolved certain issues.

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...