Regulation Fair Disclosure - Reg FD

Dictionary Says

Definition of 'Regulation Fair Disclosure - Reg FD'

A rule passed by the Securities and Exchange Commission in an effort to prevent selective disclosure by public companies to market professionals and certain shareholders.

The Reg FD rule reads as follows: "Whenever an issuer, or any person acting on its behalf, discloses any material nonpublic information regarding that issuer or its securities to [certain enumerated persons], the issuer shall make public disclosure of that information... simultaneously, in the case of an intentional disclosure; and... promptly, in the case of a non-intentional disclosure."
Investopedia Says

Investopedia explains 'Regulation Fair Disclosure - Reg FD'

In the past, many companies released important information in meetings and conference calls where shareholders and the general public were excluded. The goal of this rule is to even the playing field between individual investors and institutional investors.

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