SEC Regulation Fair Disclosure (FD)

Question

Quizplus · Accepted Answer

Regulation Fair Disclosure (FD) requires companies to release material information to the general public at the same time it is released to Wall Street professionals, thus eliminating information advantages that could result in adverse selection problems. It has not been repealed and still exists today. While FD does not directly address insider trading, it works to create a level playing field for all investors by ensuring that material information is disclosed to everyone simultaneously.