There may be some relief in sight, though, because the SEC is considering updating some of its regulations concerning restrictions. A loosening of restrictions could work in favor of companies going public and their public relations efforts. It can last months as companies gather detailed financial data. Lots to lose With much to lose, the companies generally abide by the period out of fear of the repercussions. Companies are right to fear the SEC's wrath, Emory's Carney said.
Willful violators can face criminal prosecution.
The SEC also can derail a company's business plans by forcing a withdrawal of the offer. Online grocer Webvan Group Inc. recently delayed its IPO after the SEC told executives from the Foster City, Calif., company that they were discussing too much with the media and potential investors. Going further back, Carney recalled that Ted Turner's attorneys withdrew the SEC registration statement for Turner Broadcasting in the 1980s after Turner discussed his plans on a talk show. Several years later, Turner gave a speech while his company was back in registration. This time, Turner did not breathe a word about his ambitions, sticking instead to world peace and the environment.