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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Concerns over the security of the transparency server were raised after it suffered a seven-hour glitch on May 14, hours after the 2019 polls closed.
" As the quick count of votes were stalled for hours last Monday, the Comelec claimed that the issue was not with the transparency server.
Uzbekistan became the first Central Asian country to invite IMF experts to conduct an assessment of the country's budgetary policy transparency. IMF conducted a fiscal transparency evaluation (FTE) for Uzbekistan in June 2018.
Today, the CMA's initiative to enhance public disclosure and transparency is taking on a new meaning resulting in more comprehensive and proactive disclosures instead of the release of corporate governance details or policies in a "reactive" fashion.
The chief communication officer said the report also listed increasingly scarce assistance from development partners, and the changing development landscape, adding that they pose a fresh set of fiscal, regulatory, technical and ethical challenges for global transparency efforts.
Please be advised that although Pakistan did witness an improvement in transparency scores, the jump in rank can be also be the by-product of other markets deteriorating in overall transparency.'
The Global Transparency Initiative, announced in October 2017, reflects Kaspersky Lab's ongoing commitment to assuring the integrity and trustworthiness of its products.
The Linaburg-Maduell Transparency Index was established by Carl Linaburg and Michael Maduell in 2008.
LAHORE -- Punjab Chief Minister Shehbaz Sharif has expressed his delight over transparency International's (TI) report , which says corruption is in decline in Pakistan.
LAHORE -- Punjab Chief Minister Shehbaz Sharif has said improvement in ranking in recent report of Transparency International (TI) has reaffirmed the policies of transparency of the incumbent government in Pakistan.
The non-governmental organisation (NGO) Transparency International has denied official membership status to its Cypriot branch due to fundamental disagreements regarding anti-money laundering work, prompting anger from members in Cyprus.

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