Abby Is a Stock Broker for a Large Financial Services

Abby is a stock broker for a large financial services company.A client who works at Sixth Generation Software,Ltd. ,just called to purchase several thousand shares of his company's stock.He reveals to her that the company is about to announce the appointment of a new CEO.Abby asks her client if this information is public knowledge.The reason she asks is to make certain that her client,her company,and she remain in compliance with Regulation FD,the Fair Disclosure rule.
The SEC (Securities and Exchange Commission),the organization that monitors all publicly traded companies created Regulation FD,the fair disclosure rule,which says that companies that release any information must share it with everyone,and not just a few.Everyone has the same opportunity to use the information to make financial decisions.