Elimination of IPO ‘quiet period’ proposed

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Tuesday, Oct. 26, 2004 | 9:17 a.m.

The U.S. Securities and Exchange Commission proposed scrapping the so-called quiet period intended to prevent companies poised to sell shares to the public from promoting the stock.

SEC commissioners voted 5-0 to submit the new regulation for public comment. It would amend a Depression-era rule that almost derailed Google Inc.'s $3.47 billion initial public offering in August after Playboy published an interview with the company's founders.

"Investors are entitled to materially complete and correct information at the time they make their investment decisions, not just afterwards," said SEC Chairman William Donaldson.

The new rule would let companies distribute written material, in addition to the prospectus, about securities for sale and to sponsor so-called electronic roadshows for investors.