________ occurs when issuers of publicly traded securities disclose material nonpublic information to securities analysts or selected institutional investors before making full disclosure of the same information to the general public.

Question

Quizplus · Accepted Answer

Selective disclosure occurs when issuers of publicly traded securities disclose material nonpublic information to securities analysts or selected institutional investors before making full disclosure of the same information to the general public. This practice is prohibited by the Securities and Exchange Commission (SEC) as it gives an unfair advantage to those who receive the information ahead of others, and goes against the principles of fair disclosure.

________ Occurs When Issuers of Publicly Traded Securities Disclose Material