WHAT IS 'Material News'

Material news is news a company releases that might affect the value of its securities or influence investors' decisions. Also known as material information. 

BREAKING DOWN 'Material News'

Material news includes information such as unusual corporate events, unexpected earnings results, stock splits and all other price-sensitive developments in a company, including proposed acquisitions, mergers, profit warnings and the resignation of directors. The New York Stock Exchange (NYSE) Listed Company Manual requires listed companies notify the NYSE at least 10 minutes in advance of any announcement of material news during trading hours so that NYSE can choose to temporarily halt trading in the company’s securities.

On December 4, 2017, the NYSE changed its rules to prohibit listed companies from issuing material news after the close of trading, generally 4:00 p.m. Eastern Time, until the earlier of the following scenarios: publication of the company’s official NYSE closing price or five minutes after the close of trading. This 2017 change amended the earlier 2015 amendment of Section 202.06 of the NYSE Listed Company Manual, which merely requested or advised listed companies that wanted to release material news after the close of trading wait 15 minutes, or publication of the company’s official closing price, if posted earlier. This delay is meant to avoid investor confusion in cases where trading on other markets continued after the close of trading on the NYSE, and information released by a company after the close of trading on the NYSE caused differences between the NYSE closing price and trading prices on other markets.

Despite the 2015 addition of advisory text in Section 202.06, the NYSE continued to experience situations where material news released shortly after the close of trading resulted in investor confusion. To avoid pricing disruptions when the NYSE closing auction is delayed more than five minutes, Section 202.06 as amended will continue to include advisory text requesting that companies avoid issuing material news until 15 minutes after the NYSE’s official closing time, or earlier publication of the company's official closing price.

Material News vs. Material Insider Information

Material news is that company's price-sensitive information announced publicly to shareholders, while material insider information is material information about certain aspects of a company that has not yet been made public, but that will have an impact on the company's share price once released. It is illegal for holders of material insider information to use the information to their advantage in trading stock or to provide the information to family members or friends so they can use it to make trades.

RELATED TERMS
  1. Big Board

    Big Board is a nickname for the New York Stock Exchange (NYSE).
  2. Raw Materials

    Raw materials are commodities companies use when producing or ...
  3. NYSE Amex Equities

    NYSE Amex Equities is an American stock exchange best known for ...
  4. NYSE Amex Composite Index

    The NYSE Amex Composite Index is an index of stocks that represent ...
  5. Close Period

    The close period is the time between the completion of a listed ...
  6. Materials Requirements Planning ...

    Materials requirements planning is one of the first software-based ...
Related Articles
  1. Investing

    The 3 Largest Materials ETFs (XLB, VAW)

    Find out which three exchange-traded funds (ETFs) are the largest in the basic materials sector, and how they are performing year-to-date in 2016.
  2. Financial Advisor

    Asset Manager Ethics: Rules Governing Capital Markets

    The integrity of the capital markets needs to be kept at utmost importance for all investors. This article shows how to maintain the integrity while investing.
  3. Investing

    Applied Materials Trades Ex-Dividend Tuesday (AMAT)

    Applied Materials will send its dividend payment on Dec. 15 to shareholders of record as of Nov. 25.
  4. Trading

    Traders Turn Defensive and Look to Basic Materials for Support (DD, DOW)

    Bullish chart patterns on basic materials stocks suggest traders are turning defensive. We'll take a look at several charts that are pointing to higher prices.
  5. Investing

    NYSE Glitch Halts Trading in 199 Tickers (ICE)

    A technical glitch described as a "critical issue" has halted trading in 199 tickers on the New York Stock Exchange.
  6. Trading

    Defining Illegal Insider Trading

    The better you understand why insider trading can be criminal, the better you'll understand how the market works.
  7. Investing

    Why Companies Change Exchanges

    Companies don't elect to leave an exchange so much as they're asked. Find out why.
  8. Trading

    Active Traders Remain Bullish on Materials

    The uptrends and close proximity to major support levels on the charts of key materials sector assets suggest that now could be the time to buy.
  9. Investing

    Best Dividend Paying Funds in Industrials sector

    Find out which mutual funds are the best dividend-paying funds in the industrials sector, and why dividend yields are hard to come by in industrials funds.
  10. Personal Finance

    Standards and Ethics for Financial Professionals

    Learn basic principles of financial standards, and unethical behavior of a financial professional's career and how these circumstances should be handled.
RELATED FAQS
  1. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    Discover some of the primary advantages and disadvantages that exist for companies listed on the Nasdaq exchange rather than ... Read Answer >>
  2. Move from an OTC to a major exchange

    In order to move a company from over-the-counter market to a major exchange, a number of conditions must be met to being ... Read Answer >>
  3. How Do I Find a Stock's Number of Shorted Shares?

    For general shorting information, you can usually go to any website with a stock quotes service. Read Answer >>
  4. Why do stock prices change based on news reports?

    Stock prices move up and down due to fluctuations in supply and demand. Learn how this relationship is tied into news reports ... Read Answer >>
  5. What is the history behind the opening and closing bells on the NYSE?

    Similar to school bells, the New York Stock Exchange's (NYSE) opening and closing bells mark the beginning and the end of ... Read Answer >>
Trading Center