Confidentiality Agreement

AAA

DEFINITION of 'Confidentiality Agreement'

A legal agreement between two or more parties that is used to signify that a confidential relationship exists between the parties. A confidentiality agreement is used in strategic meetings where various parties become privy to sensitive corporate information, which should not be made available to the general public or to various competitors.

Also known as a "non-disclosure agreement (NDA)".

INVESTOPEDIA EXPLAINS 'Confidentiality Agreement'

A confidentiality agreement is a standard written agreement that is used when two companies start working together. Any individual that may have access to sensitive information is often required to sign a confidentiality agreement and it is often a clear indication that the information is private. This type of agreement is often used as an incentive to build trust between the parties and it is often used as clarification in the event of a legal battle.

RELATED TERMS
  1. Trading Partner Agreement

    An agreement drawn up by two parties that have agreed to trade ...
  2. Non-Compete Agreement

    An agreement between two parties, typically an employee and employer, ...
  3. Gentleman's Agreement

    An unwritten agreement or transaction backed only by the integrity ...
  4. Confidential Treatment Application

    A form filled out in accordance with a company's 8-K, 10-Q, ...
  5. Material Insider Information

    Material information, about certain aspects of a company, that ...
  6. Disclosure

    The act of releasing all relevant information pertaining to a ...
Related Articles
  1. Personal Finance

    Want To Know What Disclosures Mean ... In Plain English?

    Disclosures are the fine print in financial reports. We strip away the legal speak to tell you what they really mean.
  2. Markets

    Buying Into Corporate Research & Development (R&D)

    Investors take note: companies that cut research and development are in danger of saving today but losing big tomorrow.
  3. Retirement

    Time To Hire A Senior Move Manager?

    Watch for these signs that you or an elderly family member may need to downsize and move somewhere easier to manange. A senior move manager can help.
  4. Retirement

    A New Solution To Help Seniors Relocate

    As Americans age – and families try to cope – the new field of senior move managers helps seniors relocate to safer homes with the least possible stress.
  5. Economics

    How A Limited Government Affects A Country's Finances

    Countries with limited governments have fewer laws about what individuals and businesses can and can’t do. What's the net result?
  6. Investing Basics

    How Does Goodwill Affect Financial Statements?

    Goodwill is a bit of a paradox--intangible, yet it is recorded as an asset on the purchasing company's balance sheet.
  7. Investing Basics

    Using Normal Distribution Formula To Optimize Your Portfolio

    Normal or bell curve distribution can be used in portfolio theory to help portfolio managers maximize return and minimize risk.
  8. Investing Basics

    R-Squared

    Learn more about this statistical measurement used to represent movement between a security and its benchmark.
  9. Insurance

    The Government And Risk: A Love-Hate Relationship

    Though the U.S. government can help its citizens by subsidizing risky loans, the costs always come back to the taxpayers.
  10. Fundamental Analysis

    Can Good News Be A Signal To Sell?

    Sometimes positive announcements can mean bad news for a stock. Find out why.

You May Also Like

Hot Definitions
  1. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  2. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  3. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  4. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  5. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  6. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
Trading Center