2 Answers
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The notice of effectiveness is a public declaration by the Securities and Exchange Commission that a public company’s registration statement has been accepted.
For shares in a public company to trade on the open market they must be registered by the company. These registration statements are reviewed by the Commission for a period of time before approval is given, and this notice marks the successful completion of this review process.
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when an company comes public it becomes effective. So for instance last week Vonage would have become effective on the first day of trading.
Source(s): my experience
