Under Regulation M, which category of securities has no restricted period?

Regulation M was established to prevent manipulation in the securities markets during a distribution of securities and to ensure fairness in trading. Under this regulation, different categories of securities have varying rules regarding the restricted period, which is the time frame before and during which certain trading activities are limited to prevent price manipulation.

Actively traded securities are defined as those that have a robust trading volume. Due to their high level of liquidity and established market presence, these securities do not have a restricted period under Regulation M. This means that participants can engage in transactions involving these actively traded securities without the limitations imposed on other categories.

In contrast, restricted securities and control securities are subject to specific regulations to prevent potential market manipulation, particularly because they are less liquid and can be more susceptible to significant price swings if trading is not carefully monitored. Equity securities, being a broader category, can include both actively traded and restricted securities, but the key point about regulated periods is specific to the underlying trading activity and volume, thus applying restrictions accordingly.

Understanding this distinction helps clarify why actively traded securities are treated differently, allowing for greater market activity without the constraints imposed on other types of securities.