Effective Date


DEFINITION of 'Effective Date'

The date, declared by the Securities & Exchange Commission (SEC), on which shares can start trading. This usually refers to the date when shares become available for sale in an initial public offering.

BREAKING DOWN 'Effective Date'

The effective date occurs approximately 20 days after the security is registered with the SEC, giving time for the SEC to review the registration. The registration will be either accepted or rejected by the twentieth day or earlier. Amendments can be made to the registration if the SEC deems that changes are necessary. If the items in question are not modified, the registration process is not completed.

  1. Security

    A financial instrument that represents an ownership position ...
  2. SEC RW Filing

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  3. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  4. Prospectus

    A formal legal document, which is required by and filed with ...
  5. Registered Security

    1. The name given to securities whereby ownership is registered ...
  6. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
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