Which of the following statements is incorrect with respect to Regulation Fair Disclosure (FD)?
A)It required 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 does not prohibit firms from communicating with analysts after a news announcement is made to all investors. However, the communication should be made in a way that does not give analysts access to material non-public information before it is made available to the public.

Which of the Following Statements Is Incorrect with Respect to Regulation