Companies that elected to provide meaningful information to shareholders and securities professionals without also informing small investors were practicing

Question

Quizplus · Accepted Answer

Selective disclosure occurs when a company chooses to provide important information to certain individuals or groups, such as institutional investors or securities professionals, but not to the general public or smaller investors. This practice is illegal under SEC regulations, as it gives the privileged few an unfair advantage over other investors. Insider trading involves using non-public information to profit from trading in a company's stock. Programmed trading refers to the use of computer algorithms to execute trades. Stair-stepping is a term used to describe a strategy in which a company gradually increases its earnings or other positive financial metrics over time to make its performance appear more steady and predictable.

Companies That Elected to Provide Meaningful Information to Shareholders and Securities