RE: Large purchase3 Dec 2021 07:15
Pmoran there could have been a multitude of updates inc the final value of the court case etc....
Understanding Close Periods
The close period is intended to prevent trading in a company's shares by its insiders ahead of the public dissemination of its financial results. This is because the insiders may be privy to information that is not yet in the public domain, and may be tempted to "jump the gun" with regard to their company shareholdings.
Why Companies Tend to Stop Making Statements During a Close Period
Companies typically refrain from releasing price-sensitive statements or news during the close period. Companies may choose to withhold making statements during the close period to prevent the company’s shares from being affected ahead of the release of the expected financial results.
If possible, a trading statement or other news might be issued prior to the start of the close period. Companies can host discussions with investors and analysts before the close period commences. It is also possible that statements and news relevant to the financial results would be released as part of the filings or shortly after.
For instance, the company might wait until the financial results are published before revealing the test results for a new product or plans for a new initiative to expand operations. There can be cases wherein a company must report news or statements during the close period even if it might influence share prices. Accidents and calamities that affect the company’s operations may need to be publicly acknowledged. A disaster at a company’s major production facility could not be ignored regardless of a close period. The sudden or unexpected departure of members of executive management likewise can call for public statements by the company that cannot wait.
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