Disclosable Event
Categories: Accounting, Board of Directors, Regulations
Does it matter? Does this event affect investment value? Is there a potentially meaningful lawsuit coming because of this disclosable event?
Like...we were sued for all that arsenic-river-dumping. Is it a frivolous suit, in that we are actually a traveling circus and we have never even touched arsenic? Or are we a semiconductor etching company and we, in fact, are killing fish? If it's the latter, that lawsuit is then a disclosable event.
In practice, disclosure of events like this are usually filed in the form of an 8-k document, which is sort of the go-to doc for one-time events that must be broadcast to investors.
Related or Semi-related Video
Finance: What is Regulation Full Disclos...43 Views
finance a la shmoop. what is regulation full disclosure or in industry parlance
reg FD ?all those whispery hallways of the 1970s and 80s
insiders muckety-mucks cheaters Liars deceivers key employees on the take [men in suits discuss stocks]
sound like the dramatic cover for a Hollywood movie and while it was and it
was real life as well. the practice of gleaning information
essentially unavailable to the average investor was a large part of the
practice of quote doing research unquote for all too many of the professional by
side investment firms of the era. the regulator's finally noticed and began to
crack down with only modest success for a while when finally reg FD was enacted
via the SEC in 2000. well that regulation massively prohibited the type of
discussions that could legally happen among analysts and company insiders. in
fact disclosure of much more than much more than the company name mailing
address and the product they sold was prohibited unless it was done in a
broadly available and well-publicized public forum that John Q public could [woman gives presentation]
participate in. the goal here was to take away free money or profits or gains from
insiders leaking information you know so that investors could make bets with way
more information on whether or not the roulette wheel of the company's
quarterly performance in earnings was going to in fact land on red twenty
three. so yeah that's what reg FD is about. trust us we've fully disclosed
everything we know about it and we're going modern here. modern era people come
on get with it. [man folds arms inside casino]