Letter Of Comment

Letter Of Comment
A letter from the Securities and Exchange Commission that is sent to a company in response to filing its registration statement. The main purpose of the comment letter is to assist the issuing company in making the information in their registration statement (or S-1) clear, transparent and free from irregularity before an issuance of new shares.

The items covered in a registration statement include the company's financial details, operations and management history, and any other important facts. The letter will typically be informal in nature, and is done as a courtesy, saving both the company and the SEC time and frustration down the road, and protecting investors from any misleading or inaccurate information.

Publicly-traded companies can greatly cut down on the time needed to come to market with new issues if they can anticipate what comments might come from the SEC and address them before the registration statement is first completed. The registration statement will become "effective" when all facts have been signed off by the SEC.


Investment dictionary. . 2012.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • letter of comment — This refers to the letter from the Superintendent commenting on the trustee s statement of receipts and disbursements. When the statement needs to be taxed, this letter must be placed by the trustee before the taxing officer. (Dictionary of… …   Glossary of Bankruptcy

  • letter of comment — Letters of comment are sent out by the S.E.C. in most cases as a means of informing registrants of securities offerings of the respects in which a registration statement is deemed not to meet the disclosure and other requirements of the… …   Black's law dictionary

  • letter of comment — Letters of comment are sent out by the S.E.C. in most cases as a means of informing registrants of securities offerings of the respects in which a registration statement is deemed not to meet the disclosure and other requirements of the… …   Black's law dictionary

  • Letter of comment — A communication to the firm from the SEC that suggests changes to its registration statement. The New York Times Financial Glossary …   Financial and business terms

  • letter of comment — A communication to the firm from the SEC that suggests changes to its registration statement. Bloomberg Financial Dictionary …   Financial and business terms

  • Letter to a Christian Nation — is a non fiction book by Sam Harris, written in response to feedback he received following the publication of his first book The End of Faith . The book is written in the form of an open letter to a Christian. Harris states that his aim is to… …   Wikipedia

  • Letter to Chesterfield — The Letter to Chesterfield (February 1755) was Samuel Johnson s response to what some believed to be Lord Chesterfield s opportunistic endorsement of his A Dictionary of the English Language . Although Chesterfield was patron of the Proposal for… …   Wikipedia

  • Letter to the editor — A letter to the editor [ [http://uwp.duke.edu/wstudio/resources/documents/letter to editor.pdf Definition from Duke University s University Writing Program] ] (sometimes abbreviated LTTE or LTE) is a letter sent to a publication about issues of… …   Wikipedia

  • letter — / letə/ noun 1. a piece of writing sent from one person or company to another to ask for or to give information 2. ♦ to acknowledge receipt by letter to write a letter to say that something has been received 3. a written or printed sign (such as… …   Dictionary of banking and finance

  • An Open Letter to Hobbyists — Traduction à relire Open Letter to Hobbyists → …   Wikipédia en Français

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”