Regulation FD

Regulation FD (fair disclosure)

U.S. S.E.C. regulation whose purpose is to ensure that select groups of investors are not privy to firm-specific information before other investors. Executives are not allowed to reveal nonpublic information during their communications with analysts and select shareholders. If information is inadvertently released, they must take steps to broaden the dissemination of the information within 24 hours of discovering the disclosure.

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.

Regulation FD

An SEC regulation that mandates a company must release material information to all investors simultaneously. Material information released inadvertently must be made publicly available within 24 hours. Some critics contend Regulation FD causes increased volatility in stock prices.
References in periodicals archive ?
Such information may be deemed material information, and EyeGate may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor EyeGate's website and its social media accounts in addition to following its press releases, SEC filings, public conference calls, and webcasts.
ENPNewswire-August 21, 2019--SEC Charges TherapeuticsMD With Regulation FD Violations
- August 20, 2019) - The Securities and Exchange Commission today charged TherapeuticsMD Inc., a pharmaceutical company headquartered in Boca Raton, Florida, with violations of Regulation FD based on its sharing of material, nonpublic information with sell-side research analysts without also disclosing the same information to the public.0x20
The Securities and Exchange Commission charged TherapeuticsMD with violations of Regulation FD based on its sharing of material, nonpublic information with sell-side research analysts without also disclosing the same information to the public, the SEC announced.
We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts.
Ultimately the SEC dropped the investigation into Hastings and Netflix, and instead used the incident to provide guidance on company social media usage under Regulation FD. The SEC clarified that companies can use social media sites like Twitter and Facebook to disseminate financial information to investors, as long as those companies have previously informed investors that the company's financial news will be shared via social media channels.
uses its Investor Relations website at https://investors.godaddy.net as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor GoDaddy's Investor Relations website, in addition to following press releases, Securities and Exchange Commission (SEC) filings, public conference calls and webcasts.
Twilio used, and intends to continue to use, its investor relations website (https://investors.twilio.com/), as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
(23) With Regulation FD's prohibition against selective disclosure of material nonpublic information barring disclosure by executives of public companies, (24) the conclusion that the recipient "should have known" of the breach becomes almost inescapable for a prosecutor.
SEC's adoption of Regulation Fair Disclosure (Regulation FD) in
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).
Firms should carefully assign responsibility for social media management to ensure compliance with Regulation FD. They should also design social media policies that include the same controls used for other financial disclosures.

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