Gun-Jumping
The illegal practice of coordinating business activities between a buyer and a target company before the merger is officially approved, often violating antitrust regulations.
Implications
The illegal practice of prematurely promoting or offering shares in a company before its initial public offering (IPO) is officially approved by regulatory authorities, often resulting in penalties or delays in the IPO process.
Example
Example: A tech startup is fined for gun-jumping after its executives made public statements about the company�s financial prospects before the IPO registration was filed, violating securities regulations.
Related Terms
Different from standard pre-IPO marketing, which must comply with strict regulations, gun-jumping involves unauthorized or premature promotion that can lead to legal consequences.
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