Regulation Fair Disclosure

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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.
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With fewer informational advantages -- think Reg FD and the ubiquity of big data and powerful computers -- the business must evolve.
Eight years later, it released guidance to explain how company websites should be used in disclosing "important company information" (SEC, 2008), and stated that websites should comply with Reg FD.
This is especially the case with the need to be Reg FD compliant.
We conjecture that the switch in the pattern around 2000 may be due to the improvement in the information environment after Reg FD and the enactment of the SOX Act in 2002 (see further discussions below).
That is completely counter to Reg FD," Mr Chowdhry remarked.
If it varies from the means communicated, or doesn't utilize them at all, then questions as to violations of Reg FD may arise.
2001), growth opportunities (Bamber & Cheon, 1995), predicted losses (Hayn, 1995; Basu, 1997), the effects of Reg FD (Heflin et al.
The Securities and Exchange Commission closed its investigation of whether the company's executives violated Reg FD in discussions with analysts, Reuters reports.
What does the Latin inscription DG REG FD stand for on British coinage?
In 2000, the Securities and Exchange Commission (SEC), concerned that companies were giving analysts and large institutional investors private information relative to the financial health of the company, put into effect Regulation Fair Disclosure, or Reg FD.
Yes, there is also a regulatory element to this story, with Reg FD requiring that all material information from a company be disclosed to all interested people equally.