Privileged Communication

Filed Under:
Dictionary Says

Definition of 'Privileged Communication'


Interaction between two parties in which the law recognizes a private, protected relationship. Whatever is communicated between these pairs of parties shall remain confidential, and the law cannot force disclosure of these communications. The individual that initially makes the privileged communication legally has the ability to prevent the other party in the relationship from disclosing the content of the privileged communication.

Investopedia Says

Investopedia explains 'Privileged Communication'


Typically, privileged communications refer to communications between attorney and client, accountant and client, doctor or therapist and patient, priest and parishioner or husband and wife (and, in some states, reporters and their sources). The recipient of the information must keep the communication private, unless the privilege is waived by the discloser of the information.



There are conditions that must be met in order to preserve the confidential status of these communications. First, the communication must be between people in a legally recognized protected relationship. Next, the communication must take place in a private setting, where the communicators have a reasonable expectation of confidentiality (like a private office). Lastly, the privileged status of the communication is lost if or when the communication is shared with a third party that is not part of the protected relationship (however, agents of the recipient of the information - such as an accountant's secretary or a doctor's nurse - would generally not be considered a third party that defeats the privileged status of the communication).

comments powered by Disqus
Hot Definitions
  1. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
  2. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  3. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  4. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  5. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  6. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
Trading Center