Disclosure
The act of releasing all relevant information pertaining to a company that may influence an investment decision. In order to be listed on major U.S. stock exchanges, companies must follow all of the Securities and Exchange Commission's disclosure requirements and regulations. Investopedia Says:
To make investing as fair as possible for everyone, companies must disclose both good and bad information. In the past, selective disclosure was a serious problem for investors because insiders would frequently take advantage of information for their own gain - at the expense of the general investing public.
Companies are not the only entities that are subject to strict disclosure regulations. By law, brokerage firms and analysts must also disclose any sort of information that they have that relates to investment decisions. For example, in order to limit conflict of interest issues, analysts must disclose any equities that they own. Related Terms:
Efficient Market Hypothesis - EMH
Full Disclosure
Insider
Insider Information
Katie Couric Clause
Material Insider Information
Non-Disclosure Agreement - NDA
Regulation Fair Disclosure - Reg FD
Rules Of Fair Practice
Transparency |