Blackout Period
1. A term that refers to a temporary period in which access is limited or denied.
2. A period of around 60 days during which employees of a company with a retirement or investment plan cannot modify their plans. Notice must be given to employees in advance of a pending blackout.
Investopedia Commentary
1. This term is often in regards to contracts, policies and business activities. For example, when a political party is unable to advertise for a set amount of time before an election.
2. In a firm, a blackout period may happen because a plan is being restructured or altered, for example, if a pension fund is shifting from one fund manager to another at a different bank.
Related Links
Retirement Planning Basics
Putting Too Much Stock In Your Company - A 401(k) Problem
Introductory Tour through Retirement Plans
See also: 401K Plan, Cafeteria Plan, Defined Benefit Plan, Defined Contribution Plan, Pension Plan
Also spelled: black out period, black-out period
blackout period
The time period prior to the release of financial information during which certain employees of a public company are prohibited from trading in the firm's stock. See also window period.
See lockdown.