Which of the following statements is incorrect with respect to Regulation Fair Disclosure (FD)?
A) It requires firms to disclose relevant information broadly to investors at the same time.
B) It restricts firms from providing analysts with information that they could use before the market is aware of the information.
C) It requires firms to announce a change in expected earnings to all investors and other interested parties at the same time.
D) It prohibits firms from communicating with analysts after a news announcement is made to all investors.
E) All of the above are correct with respect to Regulation FD.

Question

Quizplus · Accepted Answer

Regulation FD actually requires firms to disclose relevant information to analysts and investors at the same time. Therefore, statement D is incorrect as it prohibits firms from communicating with analysts after the news announcement is made to all investors.

Which of the Following Statements Is Incorrect with Respect to Regulation