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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 ?
A business opportunity seller who doesn't make an earnings claim simply has to check a box "no" on the disclosure document.
In-house counsel should remember that Canada is a foreign country and that it would be wise to retain Canadian counsel to assist with both the preparation of disclosure documents and the overall development of the franchise in Canada.
The disclosure document must attach copies of all agreements the franchisee must execute as part of the franchise, a copy of the financial statements, reports and other documents as required by the franchise regulation.
This would include not only delivery requirements for disclosure documents, but also tile importance of not making financial performance representations outside of the disclosure document.
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.
Franchisors in the United States have known for some time that July 1, 2008 looms as the mandatory deadline by which they must "convert" their disclosure documents from the Uniform Franchise Offering Circular format to the FTC-prescribed franchise disclosure document format.
The Commission (SEC) is issuing this report to emphasize the responsibilities under the federal securities laws of local government officials who authorize the issuance of municipal securities and related disclosure documents and the critical role such officials play with respect to the representations contained in the Official Statements for these securities.
Meredith Cross, deputy director of the division of corporation finance of the SEC, told the Journal that although all of the comment letters agreed that disclosure documents were too complex, there was no consensus on how to achieve simplification.
Clause 6B(2) provides that (2) if a subfranchisor proposes to grant a subfranchise to a prospective franchisee (a) the franchisor and subfranchisor must (i) give separate disclosure documents, in relation to the master franchise and the subfranchise respectively, to the prospective franchisee; or (ii) give to the prospective franchisee a joint disclosure document that addresses the respective obligations of the franchisor and the subfranchisor; (3) the subfranchisor must comply with the requirements imposed on a franchisor by this part.
Under the new small business initiatives, an issuer can raise capital by using abbreviated disclosure documents and fulfill its Securities Exchange Act of 1934 registration and periodic reporting requirements by using forms 10-SB, 10-QSB and 10-KSB and special small business instructions to form 8-K.
financial statements, audited or not, in their Canadian franchise disclosure documents.