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A company's release of all information pertaining to the company's business activity, regardless of how that information may influence investors.


The voluntary or required release of information relevant to a security, company, fund, or anything else. In order to be listed on an exchange, a company must provide disclosure on itself by registering with the SEC and abiding by regulations that govern what information about itself that the company releases. Disclosure exists to prevent price manipulation and anything else that would disrupt the efficiency of trade. See also: Transparency.


The submission of facts and details concerning a situation or business operation. In general, security exchanges and the SEC require firms to disclose to the investment community the facts concerning issues that will affect the firms' stock prices. Disclosure is also required when firms file for public offerings. See also full disclosure.


A disclosure document explains how a financial product or offering works. It also details the terms to which you must agree in order to buy it or use it, and, in some cases, the risks you assume in making such a purchase.

For example, publicly traded companies must provide all available information that might influence your decision to invest in the stocks or bonds they issue. Mutual fund companies are required to disclose the risks and costs associated with buying shares in the fund.

Government regulatory agencies, such as the Securities and Exchange Commission (SEC), self-regulating organizations, state securities regulators, and NASD require such disclosures.

Similarly, federal and local governments require lenders to explain the costs of credit, and banks to explain the costs of opening and maintaining an account.

Despite the consumer benefits, disclosure information isn't always easily accessible. It may be expressed in confusing language, printed in tiny type, or so extensive that consumers choose to ignore it.

References in periodicals archive ?
The POS disclosure document should be concise, set out key information about a product and may include, as appropriate, links or refer to other information.
It also doesn't allow making the federal disclosure document part of state business opportunity disclosure documents.
Both Jarvis and Coleman suggest franchisors prepare a national disclosure document that meets the disclosure obligations of each of the provinces so that it can be used in any of the provinces requiring disclosure.
The Franchises Act of Alberta provides protection to prospective franchisees by requiring franchisors to provide a disclosure document to franchisees in a timely manner and by providing several remedies to franchisees for breaches of the Act.
For instance, the buyer will want to know how information is gathered each year for inclusion in the disclosure document and how that information is documented.
Such steps could include becoming familiar with the disclosure documents and questioning the issuer's officials, employees and agents about the disclosure of those facts.
The Disclosure Document filed as an exhibit to the Schedule 13E-3 contains additional important information regarding the Reverse Split.
The first occurs when a solicitor gives the prospect part II of form ADV but fails to provide the separate disclosure document.
The franchisor's new obligation to disclose in Item 3 of the franchise disclosure document certain litigation involving "a parent or affiliate who induces franchise sales by promising to back the franchisor financially or otherwise guarantees the franchisor's performance" is somewhat less uncertain but no less troublesome.
This report includes a complete copy of the Franchise Disclosure Document (FDD) for the American Express Travel Service franchise brand effective 02/04/2012 (Adobe PDF format).
Foreign franchisors also now have annual disclosure document updating obligations, and need to continuously disclose to all franchisees material changes.