ShmoopTube
Where Monty Python meets your 10th grade teacher.
Search Thousands of Shmoop Videos
IPO Videos 120 videos
What are Capital Markets? The most often context used for “Capital Markets” is in corporate finance and investment banking, and it refers prima...
What are overbought and oversold? Hit play to find out.
Selling away is the practice of selling securities that aren't under the seller's auspices to sell.
Finance: What is Regulation Full Disclosure? 43 Views
Share It!
Description:
What is Regulation Full Disclosure? Publicly traded companies are required by SEC rules to release full disclosure of all info related to material events of the company within legal limits and federal statutes. For example, in order to be compliant with SEC rules, Northrop Grumman could announce a new deal to supply fighter jets for the USAF and the dollar amount of the deal, as well as for how many units over what period of time. However, national security rules would prevent the need to disclose the kind of weaponry or tactical stealth capabilities that the aircraft may include.
- Social Studies / Finance
- Finance / Financial Responsibility
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Terms and Concepts / Accounting
- Terms and Concepts / Board of Directors
- Terms and Concepts / Company Valuation
- Terms and Concepts / Investing
- Terms and Concepts / IPO
- Terms and Concepts / Marketing
- Terms and Concepts / Metrics
- Terms and Concepts / Regulations
- Terms and Concepts / Stocks
- College and Career / Personal Finance
- Finance and Economics / Terms and Concepts
Transcript
- 00:00
finance a la shmoop. what is regulation full disclosure or in industry parlance
- 00:07
reg FD ?all those whispery hallways of the 1970s and 80s
- 00:13
insiders muckety-mucks cheaters Liars deceivers key employees on the take [men in suits discuss stocks]
- 00:19
sound like the dramatic cover for a Hollywood movie and while it was and it
- 00:23
was real life as well. the practice of gleaning information
Full Transcript
- 00:26
essentially unavailable to the average investor was a large part of the
- 00:30
practice of quote doing research unquote for all too many of the professional by
- 00:36
side investment firms of the era. the regulator's finally noticed and began to
- 00:42
crack down with only modest success for a while when finally reg FD was enacted
- 00:47
via the SEC in 2000. well that regulation massively prohibited the type of
- 00:53
discussions that could legally happen among analysts and company insiders. in
- 00:59
fact disclosure of much more than much more than the company name mailing
- 01:03
address and the product they sold was prohibited unless it was done in a
- 01:07
broadly available and well-publicized public forum that John Q public could [woman gives presentation]
- 01:13
participate in. the goal here was to take away free money or profits or gains from
- 01:18
insiders leaking information you know so that investors could make bets with way
- 01:25
more information on whether or not the roulette wheel of the company's
- 01:29
quarterly performance in earnings was going to in fact land on red twenty
- 01:34
three. so yeah that's what reg FD is about. trust us we've fully disclosed
- 01:38
everything we know about it and we're going modern here. modern era people come
- 01:43
on get with it. [man folds arms inside casino]
Related Videos
GED Social Studies 1.1 Civics and Government
What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...
What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...
How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...