Regulation Fair Disclosure

(redirected from Reg FD)

Regulation Fair Disclosure

An SEC regulation requiring that all publicly-traded companies in the United States disclose relevant, or "material," information to all shareholders at the same time. Adopted in 2000, this was a response to a common practice in the 1990s in which large companies disclosed financial information on conference calls to certain analysts and neither the public at large nor even all shareholders were invited. The regulation mandates that intentional disclosures be made publicly and unintentional disclosures be made public within 24 hours. Controversial when introduced, it has increased access to information on larger firms, but some analysts suggest that it has decreased the information available, and therefore increased stock volatility for smaller firms.
Mentioned in ?
References in periodicals archive ?
Coverage features include formal entity investigation coverage (separate from Reg FD coverage), pre-claim expense coverage, and broad definition of controlled entity.
Notable coverage features include formal entity investigation coverage (separate from Reg FD coverage), pre-claim expense coverage, and broad definition of controlled entity.
With fewer informational advantages -- think Reg FD and the ubiquity of big data and powerful computers -- the business must evolve.
In October 2000, the SEC published Regulation FD (Reg FD), which sought to improve information asymmetry, and discouraged issuers from treating "information as a commodity" (Fisch, 2012).
This is especially the case with the need to be Reg FD compliant.
For example, in 2000, the passage of Regulation Fair Disclosure (Reg FD) has brought more timely and frequent communication between companies and investors thereby enhancing information transparency (Bailey et al., 2003; Heflin, Subramanyam, and Zhang, 2003; Eleswarapu, Thompson, and Venkataraman, 2004).
That is completely counter to Reg FD," Mr Chowdhry remarked.
The SEC stated that the action violated Reg FD. After 2 April, when the SEC indicated that it wouldn't be investigating Netflix further and said social media could be used for public company disclosure, the company filed a Form 8-K with the SEC in which it indicated five or six social media channels that it would possibly use in disclosing material information.
These variables include forecast horizon (Johnson et al., 2001), growth opportunities (Bamber & Cheon, 1995), predicted losses (Hayn, 1995; Basu, 1997), the effects of Reg FD (Heflin et al., 2003), size (Baginski & Hassell, 1993; Bamber & Cheon, 1995), and special items (Bradshaw & Sloan, 2003).
The Securities and Exchange Commission closed its investigation of whether the company's executives violated Reg FD in discussions with analysts, Reuters reports.
404 and the SEC's Reg FD. There are plenty of female and minority candidates who meet these requirements." Very concisely, she adds, "The lack of diversity is a symptom of the overall insularity and self-perpetuation in the boardroom."
"Curt came in with Sarbanes-Oxley and Reg FD. The whole financial environment has become more demanding."