The Quiet Period Is Designed To

question 14

Multiple Choice

The quiet period is designed to:

• A)prevent the original investors in a firm from selling their shares and destabilizing a security's price during the first six months of public trading.
• B)ensure that all potential investors have fair access to identical information.
• C)ensure that all bidders are heard in a Dutch auction.
• D)stabilize the aftermarket.
• E)silence the market so the SEC can fairly set the offer price on an IPO.

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Definitions:

WAIS

The Wechsler Adult Intelligence Scale, a widely used test designed to measure a person's cognitive ability or intelligence.

SAT Reasoning Test

A standardized test widely used for college admissions in the United States, assessing reading, writing, and math skills.

Stanford-Binet

The widely used American revision (by Terman at Stanford University) of Binet’s original intelligence test.

Mental Age

A measure of intelligence test performance devised by Binet; the chronological age that most typically corresponds to a given level of performance. Thus, a child who does as well as the average 8-year-old is said to have a mental age of 8.