DEFINITION of 'Confidential Treatment Order - CTO'

An order that provides confidential treatment for certain documents and information, that a company would otherwise have to file. A confidential treatment order (CTO) is issued by the Securities and Exchange Commission (SEC) and may only be in effect for a certain period of time, rather than indefinitely.

BREAKING DOWN 'Confidential Treatment Order - CTO'

Companies would typically seek a CTO in order to keep information that would otherwise put it at a disadvantage, a secret. For example, a company may apply for such an order to keep information regarding a pricing arrangement made with a partner, secret, since competitors finding out this information may go after the partner with a more competitive price.

RELATED TERMS
  1. Confidential Treatment Application

    A form filled out in accordance with a company's 8-K, 10-Q, ...
  2. Chief Technology Officer - CTO

    An executive who is responsible for the management of an organization's ...
  3. Confidentiality Agreement

    A legal agreement between two or more parties that is used to ...
  4. Non-Disclosure Agreement - NDA

    A legal contract between two or more parties that signifies a ...
  5. Informed Consent

    Permission from a medical patient to a doctor to receive treatment ...
  6. Trade Secret

    Any practice or process of a company that is generally not known ...
Related Articles
  1. Investing

    SEC Allowing Too Many Secrets On Wall Street

    Confidential treatment orders allow corporations to avoid disclosure and protect their secrets, but are they too easily granted?
  2. Financial Advisor

    Top SEC Exam Hacks for Financial Advisors

    These five tips will help financial advisors pass muster when the SEC comes knocking.
  3. Investing

    Tech IPOs Show Signs of Life (TWTR)

    AppNexus confidentially filed for an IPO recently, which could see the company seek a valuation of $1.5 billion and $2 billion.
  4. Personal Finance

    Policing The Securities Market: An Overview Of The SEC

    Find out how this regulatory body protects the rights of investors.
  5. Small Business

    Digital Asset Holdings

    Digital Asset Holdings provides settlement and ledger services for financial assets.
  6. Investing

    SEC Filings: Forms You Need To Know

    The forms companies are required to file provide a clear view of their histories and progress.
  7. Trading

    Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
RELATED FAQS
  1. A CFA Member or Candidate may be justified in disclosing confidential information ...

    The correct answer is: D) While acknowledging the importance of preserving confidentiality (and sensitivity of financial ... Read Answer >>
  2. What is leakage?

    Leakage describes a situation where information is released to the public when it should have remained private. This is often ... Read Answer >>
  3. How do I set a strike price in foreign exchange trading?

    Learn about the different order types foreign exchange traders can use to manage positions at certain strike prices and how ... Read Answer >>
  4. How do I place a limit order online?

    Learn how a limit order is placed, the types of stocks it is most useful for and the specifications placed with it to suit ... Read Answer >>
  5. What's the difference between a stop and a limit order?

    Different types of orders allow you to be more specific about how you'd like your broker to fulfill your trades. When you ... Read Answer >>
  6. What is the difference between a stop loss order and a limit order?

    Learn how to manage losses and reduce risk in volatile markets while reviewing the differences between stop-loss orders and ... Read Answer >>
Hot Definitions
  1. Price Elasticity Of Demand

    A measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. Price ...
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  3. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  6. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
Trading Center