Bring On The Noise

One problem raised in the Facebook IPO was that relevant information about the company was disclosed to a group of select investors but not to the general public. However, under the current quiet period rules, it appears that nothing wrong was done. In part because of this, the SEC has decided to review quiet period rules in light of technology improvements. The existing quiet period rules allow for the underwriter to communicate with its clients but not the general public. Although current SEC chairman Mary Shapiro said the current rules offer "real benefits", Representative Darrell Issa has requested that the SEC reevaulate the quiet period.