Post-effective period is the stage in the initial public offering (IPO) process after the Securities and Exchange Commission (SEC) declares the issuer’s registration statement effective. Section 5 of the Securities Act and SEC regulations govern an issuer’s communications and activities throughout the IPO process, known as gun jumping. The predominant requirement for issuers in the post-effective period is that they deliver the prospectus to investors.
[Last updated in January of 2022 by the Wex Definitions Team]