What typically occurs during the quiet period surrounding an IPO?

During the quiet period surrounding an IPO, company executives are indeed restricted from discussing the IPO publicly. This period is crucial to ensure that the market is not influenced by information that could be perceived as promotional or misleading prior to the stock being publicly traded. The quiet period is established to maintain fairness and transparency, allowing potential investors to base their decisions solely on the official documents, such as the prospectus, rather than on potentially biased statements from the company's management.

This restriction is part of the regulatory framework established by the Securities and Exchange Commission (SEC) and is meant to prevent any premature pumping or speculation surrounding the company's shares. It helps to ensure that information is disseminated in an orderly fashion and reduces the risk of market manipulation.

The other options refer to activities that do not align with the intent and regulations governing the quiet period. Heavy marketing is specifically limited, and shareholders cannot sell shares freely until after the IPO has been completed. Moreover, analysts are also bound by regulations that limit their ability to issue reports on the company during this time to prevent conflicts of interest and ensure that all investors have access to the same level of information.