(redirected from Disclosure Document)
Also found in: Dictionary, Thesaurus, Medical, Legal.


A company's release of all information pertaining to the company's business activity, regardless of how that information may influence investors.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Delivery may be effected by email or pre-paid courier; however, if a disclosure document is to be delivered by way of a prepaid courier, the franchisor must ensure that the method of delivery allows for tracking and confirmation of receipt of the disclosure document by the prospective franchisee, which is not a requirement in the other provinces that provide for delivery by prepaid courier.
The POS disclosure document should be clear, fair, not misleading and written in a plain language designed to be understandable by the consumer.
1) Information Regarding Seller--The seller's identifying information including name, business address, telephone number, the name of the salesperson offering the business opportunity, and the date when the FTC business opportunity disclosure document was furnished to the purchaser.
"And now, in many cases, you have to have a customized disclosure document for each candidate.
The new Safe Harbor Disclosure document follows enhancements to LoanSifter's product suite that enable clients to customize and report on their own loan officer compensation plans, thus providing the tools to better manage compliance.
Deputy Governor Grant Spencer said the changes in disclosure requirements will significantly reduce banks' compliance costs, while at the same time creating more manageable disclosure documents that are better aligned with the needs of investors and analysts.
If a disclosure document is required, Lanam explained that the sentiment was to make it a strong enough one so that it would be used to meet that requirement.
The letters and opinions referred to by the practitioners are "incidental" to the statements in the disclosure documents. For example, such letters and opinions would include the following: (1) 10b-5 letters, disclosure letters, or negative assurances letters, (2) opinions on the accuracy of the U.S.
When considering whether to take the plunge, obtain a copy of the franchisor's disclosure document (which outlines the most important characteristics a successful franchisee is likely to have).
Section 4 of the Act imposes a duty upon a franchisor to give every prospective franchisee a copy of the franchisor's disclosure document. The disclosure document must be received by the prospective franchisee at least fourteen days before the signing by the prospective franchisee of any agreement relating to the franchise or the payment of any consideration by the prospective franchisee relating to the franchise, whichever is earlier.
First, anti-fraud rules apply, thus requiring a disclosure document, however brief.
Unlike most state laws, the federal franchise rule does not require that a franchisor file its disclosure document with the commission; thus, no federal review ensues which ultimately ensures compliance.