Transparency

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Dictionary Says

Definition of 'Transparency'

The extent to which investors have ready access to any required financial information about a company such as price levels, market depth and audited financial reports. Classically defined as when "much is known by many", transparency is one of the silent prerequisites of any free and efficient market.

When transparency relates to information flow from the company to investors, it is also known as "full disclosure".
Investopedia Says

Investopedia explains 'Transparency'

Transparency helps to prevent the corruption that inevitably occurs when a select few  have access to important information, allowing them to use it for personal gain. Reduced price volatility also tends to be a byproduct of a transparent market because all the market participants can base decisions of value on the same data.

There are dozens of federal regulations in place to ensure transparency in our markets. Companies also have a strong motivation to provide disclosure, as transparency is generally rewarded through the stock's performance.
Search results for

'Transparency'

  • The Importance Of Corporate Transparency

    http://www.investopedia.com/articles/fundamental/03/121703.asp
    The Importance Of Corporate Transparency. ... Transparency Is Assurance The word
    "transparent" can be used to describe high-quality financial statements. ...

  • Actively Managed ETFs: Risks And Benefits For Investors

    http://www.investopedia.com/articles/exchangetradedfunds/08/actively-managed-etfs.asp
    ... Tutorial: Introduction To ETFs The Big Challenge: Transparency This process sounds
    rather simple, but it is actually extremely complicated due to the way ETFs ...

  • The Best CEOs Listen To The Street

    http://www.investopedia.com/articles/fundamental-analysis/09/ceos-ear-to-the-street.asp
    Studies show that transparency and listening to the market are a winning
    combination for CEOs and the companies they run. ...

  • Bond ETFs: A Viable Alternative

    http://www.investopedia.com/articles/bonds/05/011105.asp
    ... for which automation has leveled the playing field for retail and institutional
    investors - the bond market lacks liquidity and price transparency except for ...

  • Sizing Up A Career As A Ratings Analyst

    http://www.investopedia.com/articles/financialcareers/09/ratings-analyst-career.asp
    ... Analysts hold corporations accountable for their performance and promote corporate
    transparency, so analysts not only analyze the market, but help to keep it ...

  • Active ETFs: Higher Cost Vs. Added Value

    http://www.investopedia.com/articles/exchangetradedfunds/08/active-ETF.asp
    ... The ETF structure, by design, provides investors with lower expenses, tax efficiency,
    fund transparency, liquidity and trading flexibility. ...

  • Sovereign Wealth Funds - Friend Or Foe?

    http://www.investopedia.com/articles/economics/09/sovereign-wealth-fund-capital.asp
    ... without voting rights. Transparency Is the Answer One of the most important
    aspects to consider going forward is transparency. As long ...

  • An Introduction To Sovereign Wealth Funds

    http://www.investopedia.com/articles/economics/08/sovereign-wealth-fund.asp
    Countries use these investments to stabilize their economies,
    but critics worry about their lack of transparency. ...

  • The Hidden Costs Of Investing In Mutual Funds

    http://www.investopedia.com/articles/mutualfund/08/hidden-investment-fees.asp
    ... Accordingly, one of the more problematic elements of the entire investment process
    is a lack of cost transparency, and at worst, costs that are really concealed ...

  • Breaking Down Binomial Trees

    http://www.investopedia.com/articles/financial-theory/binomial-trees-black-scholes-model.asp
    ... Transparency Closely related to the multi-period review is the ability of the binomial
    model to provide transparency into the underlying value of the asset and ...

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