Transparency

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Transparency

The state in which all relevant information is fully and freely available to the public. Nearly every analyst agrees that transparent markets are desirable because they lead to greater efficiency. Laws and regulations exist in most jurisdictions encouraging or mandating transparency. For example, the SEC requires disclosure forms declaring a great many different actions when or immediately after they occur. Likewise, the Sarbanes-Oxley Act is designed to increase transparency in accounting. A minority view holds that these laws and regulations intended to create transparent markets in fact reduce efficiency. Others contend that markets are efficient with or without transparency. See also: Efficient market hypothesis.

transparency

The full, accurate, and timely disclosure of information.
Case Study Ford Motor Company executives indicated in spring 2001 that the company planned to provide shareholders and analysts with greater transparency of the firm's financial results. As part of the improved transparency, Ford was expected to report separate results from its Premier Automotive Group (PAG), comprising Aston Martin, Jaguar, Lincoln, Land Rover, and Volvo Cars. In the prior year Ford reported an operating loss of $35 million in Europe only because income from PAG and customer services mostly offset operating losses of nearly $1 billion in its other European operations. At the time Ford did not report profits for individual brands or product groups. Transparency permits shareholders and analysts a greater understanding of a firm's operations, including which parts of the firm are most and least profitable. This, in turn, places greater pressure on the firm's management to produce acceptable results in all facets of a company's operations.

Transparency.

Transparency is a measure of how much information you have about the markets where you invest, the corporations whose stocks or bonds you buy, or the mutual funds or other investments you select.

For example, in order to achieve maximum transparency in US markets, the Securities and Exchange Commission (SEC) requires corporations to disclose all information that might have an impact on their financial status so that investors can make fully informed decisions.

Real-time trading information, increasingly available to individuals as well as institutional investors, and linked pricing systems are other steps toward complete transparency.

References in periodicals archive ?
Subdividing PLN according to functions will allow the generation and retailing functions to engage in sound competition and the transmission and distribution functions play by transparant rules.
The types of adhesive tape which these companies produce are as follows: OPP packing tape, OPP printed tape, transparant tape, stationary tape, and aluminum foil tape.
Tenders are invited for Executive File Folder With Zipper Made With Good Quality Rexine Dark Brown/Black Colour, Transparant In 10 Leaves Size 15 X10 For Retired Railway Staff.
Tenders are invited for Executive File Folder With Zipper Size- 15 X10 , Made With Good Quality Rexine Dark Brown Colour With 10 Transparant Leaves For Retired Railway Staff.
De partners van de Brede school Etten-Leur dromen van een mooi, inspirerend, flexibel, multifunctioneel, transparant, fris en duurzaam gebouw.
Tenders are invited for Polythene Bag Transparant Ldpe One Side Open Size 600 X 400 X 0.10 Mm Thickness 100 Micron.