Regulation Fair Disclosure - Reg FD


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."

BREAKING DOWN '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.

  1. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  2. Institutional Investor

    A non-bank person or organization that trades securities in large ...
  3. Regulation T - Reg T

    The Federal Reserve Board regulation that governs customer cash ...
  4. Regulation U

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  5. State Administrator

    The government agency or official who oversees and enforces state-level ...
  6. Insider Information

    A non-public fact regarding the plans or condition of a publicly ...
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