Gun Jumping
Barron's Finance & Investment Dictionary:
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Gun Jumping
1. trading securities on information before it becomes publicly disclosed.
2. illegally soliciting buy orders in an underwriting, before a Securities and Exchange Commission Registration is complete.
| Gulp, Guardian | |
| Gunslinger, HIT |
Investopedia Financial Dictionary:
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Gun Jumping
1. The illegal practice of soliciting orders to buy a new issue before registration of the initial public offering (IPO) has been approved by the Securities and Exchange Commission (SEC).
2. Trading securities on the basis of information that has not yet been disclosed to the public.
Investopedia Says:
The theory behind gun jumping is that investors should make decisions based on the full disclosure in the prospectus, not on the information disseminated by the company that has not been approved by the SEC. If a company is found guilty of "jumping the gun", the IPO will be delayed.
Related Links:
Learn to decipher the secret language of the prospectus - it can tell you a lot about a company's future. Don't Forget To Read The Prospectus!
What's an IPO, and how did everybody get so rich off them during the dotcom boom? We give you the scoop. IPO Basics Tutorial
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Copyrights:
Barron's Finance & Investment Dictionary
Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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