4.1.5.4.3. Post-Effective Period
The post-effective period is the period after the registration statement has become effective. At this point, the company is allowed to sell its securities to the public, but first, the price of the security must be decided upon.
During the cooling-off period, the price of the offering is not yet set. When underwriters present the offering on the road show, they present a possible price range to investors and assess investors’ interest. If interest in the offering is high, underwriters set the public offering price at the high end of the range. If interest is moderate or low, underwriters set the price at the low end of the range. If a new issue of securities is particularly hot,