Law Blog Category: Gun Jumping

Corporate Communications During the Public Offering Process; Avoid Gun Jumping

Concurrent Public and Private Offerings

Gunjumping Restrictions On Communications Related To IPOs

February 25, 2011 in Broker-Dealer, Gun Jumping, IPO

”Gunjumping” is the dissemination of information regarding the Issuer before a complete prospectus has been filed with the Securities and Exchange Commission (“SEC”). Communications prior, during and immediately following the filing of a registration statement are strictly regulated to prevent an Issuer from hyping the market in association with an offering. In addition, the SEC wants to ensure that investors decisions to participate in an offering are based on information that has been reviewed by the SEC and meets the disclosure standards set forth in the securities laws.