Legal Definitions - Regulation Fair Disclosure

Regulation Fair Disclosure (Reg FD) is a rule created by the Securities and Exchange Commission (SEC) in October 2000. It requires companies to disclose important information to all investors at the same time. This is to prevent some investors from getting information before others, which could give them an unfair advantage.

Examples of information that companies must disclose under Reg FD include:

• Earnings reports
• Mergers and acquisitions
• Product discoveries
• Changes in auditors

For instance, if a company discovers a new product that could significantly impact its stock price, it must disclose this information to all investors at the same time. It cannot give this information to a select group of investors before making it public.

Reg FD helps ensure that all investors have access to the same information at the same time, which promotes fairness and transparency in the stock market.