Disclosure

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Disclosure

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

Disclosure

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.

disclosure

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.

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 ?
Disclosures you make under the Fair Credit Reporting Act (if any); and
Conversely, the Baker court found the former employer's disclosures to the offices of the Governor and Attorney General exceeded the terms of the consent because the applicant only agreed to the release of information solicited by the state police under a guarantee of confidentiality.
The Section 404 Internal Control Data Feed provides a listing of all section 404 internal control disclosures filed to date with the SEC.
Organized to be used as a reference tool, it provides practitioners with practical, though non-authoritative, guidance on nonprofits' financial statements and disclosures.
The Sarbanes-Oxley Act's mandate to improve the quality of corporate disclosures and to strengthen auditors' independence has caused financial auditors to require companies to disclose privileged information, particularly as it relates to tax positions.
The California Board of Accountancy has indicated that disclosures made in an engagement letter will satisfy the requirement.
One of the main strategies of the government in its battle against abusive tax shelters is to shine an early spotlight on defined categories of RTs, by requiring detailed disclosures with respect to the participants (including tax advisers), structures and purported tax benefits of such transactions.
17--General Disclosure Requirements, under 17(b) Time of Disclosures, a new paragraph 3.
With state nexus rules becoming marginally more clear over the years (though their application remains difficult) and the rapidly growing increase in state taxing enforcement, along with an exponential increase in the number of disclosures of taxpayer information between taxing authorities at every level, voluntary disclosure has become a popular and effective tool for taxpayers to reduce back-tax liability and become properly registered to pay the appropriate state taxes.
NEW YORK -- Steven Hall & Partners, the independent executive compensation consulting firm, has filed a letter with the Securities and Exchange Commission (SEC) commenting on the Commission's Proposed Amendments to Executive Compensation and Related Party Disclosure Rules.
Until this is changed, additional disclosures will always be needed to supplement financial statements that fail to provide users what they need.