Regulation Fair Disclosure

Regulation Fair Disclosure (Reg FD) is a rule adopted by the U.S. Securities and Exchange Commission (SEC) in 2000 to promote full and fair disclosure of information by publicly traded companies. The regulation aims to eliminate selective disclosure, ensuring that all investors have equal access to material information that could affect a company’s Stock price.

Under Reg FD, when a company discloses material information to certain individuals or groups (like analysts or Institutional Investors), it must also make that information available to the general public, typically through press reLeases or filings with the SEC.

Examples of Reg FD cases include:

• Case 1: A company holds a private meeting with analysts and discusses upcoming earnings. To comply with Reg FD, it must publicly disclose the same information, often through a press reLease or filing.
• Case 2: An executive accidentally leaks confidential information to a journalist. The company must issue a public statement to ensure all investors have access to that information to avoid regulatory action.