
Close Period
The close period (or closed period) is the time between the completion of a listed company's financial results and the announcing of these results to the public. The close period is typically regarded as the one-month period preceding the release of a company's quarterly results, and the two-month period before the release of its annual results. The close period (or closed period) is the time between the completion of a listed company's financial results and the announcing of these results to the public. Companies may choose to withhold making statements during the close period to prevent the company’s shares from being affected ahead of the release of the expected financial results. The close period is intended to prevent trading in a company's shares by its insiders ahead of the public dissemination of its financial results.

What Is the Close Period?
The close period (or closed period) is the time between the completion of a listed company's financial results and the announcing of these results to the public. The close period is typically regarded as the one-month period preceding the release of a company's quarterly results, and the two-month period before the release of its annual results.
The close period differs from a quiet period, where companies are required to embargo any public promotions before an initial public offering (IPO) is made.



Understanding Close Periods
The close period is intended to prevent trading in a company's shares by its insiders ahead of the public dissemination of its financial results. This is because the insiders may be privy to information that is not yet in the public domain, and may be tempted to "jump the gun" with regard to their company shareholdings.
For example, if a company has unexpectedly had a disastrous quarter, its shares may be expected to plunge once the financial results are released. A corporate insider who sells some or all of his or her shares in the company before the news is released to the general public would be subject to severe sanctions from the regulators, including disgorgement of profits if any, fines and even incarceration in extreme cases.
Why Companies Tend to Stop Making Statements During a Close Period
Companies typically refrain from releasing price-sensitive statements or news during the close period. Companies may choose to withhold making statements during the close period to prevent the company’s shares from being affected ahead of the release of the expected financial results.
If possible, a trading statement or other news might be issued prior to the start of the close period. Companies can host discussions with investors and analysts before the close period commences. It is also possible that statements and news relevant to the financial results would be released as part of the filings or shortly after.
Related terms:
Disgorgement
Disgorgement is repayment of ill-gotten gains that is imposed on wrongdoers by the courts. Funds are paid back with interest to those affected. read more
Embargo
An embargo is a government order that restricts commerce or exchange with a specified country, usually as a result of political or economic problems. read more
Escrowed Shares
Escrowed shares are shares held in an escrow account pending the completion of a corporate action or the elapse of a time period leading to an event. read more
Insider
An insider is a director, senior officer, or any person or entity of a company that beneficially owns more than 10% of a company's voting shares. read more
Lockdown
A lockdown, also known as a lockup, is a period of time in which holders of a company’s stock are restricted from selling their shares. read more
Price Efficiency
Price efficiency is the belief that asset prices reflect the possession of all available information by all market participants. read more
Quiet Period
A quiet period is a period of time corporate managers are forbidden to talk or release new information, usually around an IPO. read more
Value Investing
Value investors like Warren Buffett select undervalued stocks trading at less than their intrinsic book value that have long-term potential. read more