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Simple English definitions for legal terms

testing-the-waters

Read a random definition: first-filing rule

A quick definition of testing-the-waters:

Testing-the-waters is when a company talks to certain big investors to see if they are interested in buying the company's stock before the company officially asks people to buy it. This is allowed by a rule called Securities Act Rule 163B, which was made by the Securities and Exchange Commission (SEC) in 2019. Before this rule, only certain types of companies could do this. Now, any company can do it as long as they only talk to certain big investors. This helps companies decide if they should sell their stock to the public and protects investors.

A more thorough explanation:

Definition: Testing-the-waters is when a company talks to certain investors to see if they are interested in buying the company's stock before the company officially files paperwork to sell the stock to the public. This is allowed by the Securities and Exchange Commission (SEC) under certain conditions.

Example: A company wants to sell stock to the public, but they are not sure if there will be enough interest. Before they officially file paperwork with the SEC, they talk to certain investors who might be interested in buying the stock. If the investors show enough interest, the company will file the paperwork and sell the stock to the public.

Explanation: Testing-the-waters allows companies to see if there is enough interest in their stock before they go through the expensive and time-consuming process of filing paperwork with the SEC. This can save the company a lot of money and time if there is not enough interest in the stock. However, companies can only talk to certain investors and must follow certain rules set by the SEC to protect investors.

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got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
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