DEFINITION of 'Confidential Treatment Order - CTO'

An order that provides confidential treatment for certain documents and information, that a company would otherwise have to file. A confidential treatment order (CTO) is issued by the Securities and Exchange Commission (SEC) and may only be in effect for a certain period of time, rather than indefinitely.

BREAKING DOWN 'Confidential Treatment Order - CTO'

Companies would typically seek a CTO in order to keep information that would otherwise put it at a disadvantage, a secret. For example, a company may apply for such an order to keep information regarding a pricing arrangement made with a partner, secret, since competitors finding out this information may go after the partner with a more competitive price.

RELATED TERMS
  1. Confidential Treatment Application

    A form filled out in accordance with a company's 8-K, 10-Q, ...
  2. Confidentiality Agreement

    A legal agreement between two or more parties that is used to ...
  3. Non-Disclosure Agreement - NDA

    A legal contract between two or more parties that signifies a ...
  4. Informed Consent

    Permission from a medical patient to a doctor to receive treatment ...
  5. Bracketed Buy Order

    A buy order that is accompanied by a sell limit order above the ...
  6. Back Order

    A back order generally indicates that customer demand for a product ...
Related Articles
  1. Investing

    SEC Allowing Too Many Secrets On Wall Street

    Confidential treatment orders allow corporations to avoid disclosure and protect their secrets, but are they too easily granted?
  2. Insights

    How NDAs Work and Why They're Important

    A non-disclosure agreement, or NDA, is a legal document that keeps the lid on sensitive information.
  3. Investing

    The Basics of Trading a Stock: Know Your Orders

    Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
  4. Investing

    Explaining Market Orders

    A market order is the most common order used to purchase a financial security.
  5. Personal Finance

    Policing The Securities Market: An Overview Of The SEC

    Find out how this regulatory body protects the rights of investors.
  6. Small Business

    Digital Asset Holdings

    Digital Asset Holdings provides settlement and ledger services for financial assets.
RELATED FAQS
  1. What's the difference between a market order and a limit order?

    Market orders execute a transaction at the present stock price and limit orders execute the transaction if the stock price ... Read Answer >>
  2. What is a "phishing scam" and how can they be avoided?

    The term phishing (as in fishing for confidential information) refers to a scam that fraudulently obtains and uses an individual's ... Read Answer >>
  3. What are the regulations surrounding limit order protection?

    Learn about the order protection rule enacted by the Securities and Exchange Commission (SEC) to ensure investors receive ... Read Answer >>
  4. What is the difference between a stop and a market order?

    Learn about market orders and stop orders, how they are used and executed, and the main difference between stop orders and ... Read Answer >>
  5. How do I set a strike price in foreign exchange trading?

    Learn about the different order types foreign exchange traders can use to manage positions at certain strike prices and how ... Read Answer >>
Hot Definitions
  1. Liquid Asset

    An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally ...
  2. Nostro Account

    A bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts ...
  3. Retirement Planning

    Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve ...
  4. Drawdown

    The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted ...
  5. Inverse Transaction

    A transaction that can cancel out a forward contract that has the same value date.
  6. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
Trading Center