When did earnings conference calls become open to the public?

By Chizoba Morah AAA
A:

Earnings conference calls are periodic teleconference events held by publicly traded companies. These conference calls are held so that the company can discuss the financial results of the period (quarterly, annually, etc). Before 2000, these earnings calls were generally closed to the public (individual investors) and only open to large institutional investors and analysts. During the 1990s, when internet usage became widespread and individual investors gained access to stock trading functions through the web, there became an increasing awareness of the importance of information.

A lot of companies started offering webcasting services in order to encourage companies to include individual investors in the conference calls. In December 1999, faced with increasing complaints from individual investors, the SEC proposed Regulation FD. In August 2000, after vigorous debate, the SEC passed Regulation FD. To promote full public disclosure, Regulation FD stipulates that companies must make public any nonpublic information that is disclosed to certain individuals or entities like securities market professionals, analysts or company investors.

For more on conference calls, read Conference Call Basics and Conference Calls: Press 1 For Investment Insight.

This question was answered by Chizoba Morah.

RELATED FAQS

  1. What is the difference between operating income and EBITDA?

    Read about the major differences between earnings before interest, taxes, depreciation and amortization (EBITDA) and operating ...
  2. What is the first day of the third quarter?

    Learn when the first day of the third quarter begins. Explore how reported financial results may have a profound impact on ...
  3. When does a business report gross margins?

    Learn how gross margins are calculated and when publicly traded companies release these figures. Explore consensus street ...
  4. How do I find a good personal bankruptcy lawyer?

    Read how to find a good personal bankruptcy lawyer, and learn how much you can expect to pay for services if you are considering ...
RELATED TERMS
  1. Lilly Ledbetter Fair Pay Act

    A federal law designed to ensure equal pay for all workers, regardless ...
  2. Age Discrimination In Employment Act Of 1967

    A federal statute protecting "certain applicants and employees" ...
  3. Civil Rights Act of 1964

    Landmark federal legislation that prohibits discrimination on ...
  4. Occupational Safety And Health Act

    Law passed in 1970 to encourage safer workplace conditions in ...
  5. Administrative Order On Consent (AOC)

    An agreement between an individual or business and a regulatory ...
  6. Licensed For Reinsurance Only

    A license that allows a company to engage in services related ...

You May Also Like

Related Articles
  1. Coders created Bitcoin to be decentralized and independent of governments and banks. Authorities are still struggling to create a legal framework.
    Forex

    Bitcoin's Main Stumbling Block: Navigating ...

  2. You may owe money, but you still have rights. There's a long list of things debt collectors are banned from doing to you. Know what's illegal.
    Credit & Loans

    5 Things Debt Collectors Can't Do To ...

  3. Sounds like a bad horror movie, but it really could happen to you. Here's how to identify zombie debt and send collectors back to the dead-debt graveyard.
    Credit & Loans

    How To Beat Off A Zombie Debt Collector

  4. Understanding how the debt collection business works will give you a better chance of coming out ahead if you ever have to tangle with a collection agent.
    Credit & Loans

    Inside Secrets Of The Debt Collection ...

  5. Investigate these expat havens if you seek a developed country with low barriers for getting a permanent resident visa – sometimes even citizenship.
    Personal Finance

    5 Developed Countries That Welcome Expats

Trading Center