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. Non-Disclosure Agreement - NDA

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

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

    Any practice or process of a company that is generally not known ...
  6. Bracketed Buy Order

    A buy order that is accompanied by a sell limit order above the ...
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. Trading

    Defining Illegal Insider Trading

    The better you understand why insider trading can be criminal, the better you'll understand how the market works.
  3. Investing

    The Basics of Trading a Stock: Know Your Orders

    Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
  4. Personal Finance

    Policing The Securities Market: An Overview Of The SEC

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

    Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
  6. Small Business

    Digital Asset Holdings

    Digital Asset Holdings provides settlement and ledger services for financial assets.
RELATED FAQS
  1. What are the regulations surrounding limit order protection?

    Learn about the order protection rule enacted by the Securities and Exchange Commission (SEC) to ensure investors receive ... Read Answer >>
  2. 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 >>
  3. 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 >>
  4. What are the advantages of a limit order over a market order?

    Understand the functional differences between a limit order and a market order and the respective advantages and disadvantages ... Read Answer >>
  5. What's the difference between a stop and a limit order?

    A limit order is an order that sets the maximum or minimum at which you are willing to buy or sell a particular stock. With ... Read Answer >>
  6. How do I place an order to buy or sell shares?

    Read a brief overview of how to open a brokerage account, how to buy and sell stock, and the different kinds of trade orders ... Read Answer >>
Hot Definitions
  1. Blue Chip

    A blue chip is a nationally recognized, well-established, and financially sound company.
  2. Payback Period

    The length of time required to recover the cost of an investment. The payback period of a given investment or project is ...
  3. Collateral Value

    The estimated fair market value of an asset that is being used as loan collateral. Collateral value is determined by appraisal ...
  4. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  5. Current Account

    The difference between a nation’s savings and its investment. The current account is defined as the sum of goods and services ...
  6. Liability

    Liabilities are defined as a company's legal debts or obligations that arise during the course of business operations.
Trading Center