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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References in periodicals archive ?
2002, "Investor Access to Conference Call Disclosures: Impact of Regulation Fair Disclosure on Information Asymmetry," Northwestern University Working Paper.
Regulation Fair Disclosure (Reg FD), introduced in the US in October 2000, was intended to eliminate the unfair advantage enjoyed by companies' analysts and favoured clients from private information flows, and stated that any disclosure of information must be done publicly.
Regulation Fair Disclosure has been endless ever since the new disclosure rules, which prohibit disclosure of material information to select people, such as securities analysts and large investors, took effect one year ago.
Even before the passage of Regulation Fair Disclosure, Wells Fargo was careful not to disclose material information on a selective basis.
Regulation Fair Disclosure has forced companies to share financial information with more than just a few select analysts.
In response, in 2000, the SEC enacted Regulation Fair Disclosure (known as Regulation FD), requiring companies to make public any information that they shared with analysts and investors.

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