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 role does the Inspector General play with the Securities and Exchange Commission?

    Understand the purpose of the Office of Inspector General, an independent office contained within the Securities and Exchange ...
  2. How long does it take to execute an M&A deal?

    Read about the mergers and acquisitions process, and find out why the average M&A deal can take half a year to three years ...
  3. How is trading volume regulated by the Securities and Exchange Commission (SEC)?

    Learn about how the SEC uses the trading volume formula as one requirement for an exemption to the ban on the resale of restricted ...
  4. What do I do if I think an accountant is in violation of the Generally Accepted Accounting ...

    Learn where to report financial accounting fraud if you suspect an accountant is in violation of the generally accepted accounting ...
RELATED TERMS
  1. Slander

    Slander is the act of harming one person’s reputation by telling ...
  2. Libel

    Libel is publishing a statement about someone in written form ...
  3. Defamation

    Defamation is any statement (written or spoken) that damages ...
  4. Fair Housing Act

    This law (Title VIII of the Civil Rights Act of 1968) forbids ...
  5. PCI Compliance

    Technical and operational standards that businesses are required ...
  6. Mandatory Binding Arbitration

    A contract provision that requires the parties to resolve contract ...

You May Also Like

Related Articles
  1. Professionals

    Is a Google Robo-Advisor on the Horizon?

  2. Investing

    Why We Need Antitrust Laws

  3. Trading Strategies

    IPO Flippers And The Companies Who Hate ...

  4. Professionals

    SEC to Advisors: Implement Cybersecurity ...

  5. Fundamental Analysis

    How Patent Trolls Hurt Competition

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!