DEFINITION of 'Disclosure'

The act of releasing all relevant information pertaining to a company that may influence an investment decision. In order to be listed on major U.S. stock exchanges, companies must follow all of the Securities and Exchange Commission's disclosure requirements and regulations.

BREAKING DOWN 'Disclosure'

To make investing as fair as possible for everyone, companies must disclose both good and bad information. In the past, selective disclosure was a serious problem for investors because insiders would frequently take advantage of information for their own gain - at the expense of the general investing public.

Companies are not the only entities that are subject to strict disclosure regulations. By law, brokerage firms and analysts must also disclose any sort of information that they have that relates to investment decisions. For example, in order to limit conflict of interest issues, analysts must disclose any equities that they own.

  1. Disclosable Event

    A corporate event that is disclosed to shareholders. Securites ...
  2. Katie Couric Clause

    A slang term for a controversial proposed clause from a Securities ...
  3. Insider Information

    A non-public fact regarding the plans or condition of a publicly ...
  4. Material Insider Information

    Material information, about certain aspects of a company, that ...
  5. Efficient Market Hypothesis - EMH

    An investment theory that states it is impossible to "beat the ...
  6. Regulation Fair Disclosure - Reg ...

    A rule passed by the Securities and Exchange Commission in an ...
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