effective date

effective date definition - business

effective date

  1. The date an agreement takes effect. For example, FAS 152 by the Financial Accounting Standards Board became effective for financial statements for fiscal years beginning after June 15, 2005.
  2. The date on which underwriters may sell a new offering registered with the SEC. There is usually a 20-day cooling-off period between the filing of a registration and the effective date.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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