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A company's release of all information pertaining to the company's business activity, regardless of how that information may influence investors.


The voluntary or required release of information relevant to a security, company, fund, or anything else. In order to be listed on an exchange, a company must provide disclosure on itself by registering with the SEC and abiding by regulations that govern what information about itself that the company releases. Disclosure exists to prevent price manipulation and anything else that would disrupt the efficiency of trade. See also: Transparency.


The submission of facts and details concerning a situation or business operation. In general, security exchanges and the SEC require firms to disclose to the investment community the facts concerning issues that will affect the firms' stock prices. Disclosure is also required when firms file for public offerings. See also full disclosure.


A disclosure document explains how a financial product or offering works. It also details the terms to which you must agree in order to buy it or use it, and, in some cases, the risks you assume in making such a purchase.

For example, publicly traded companies must provide all available information that might influence your decision to invest in the stocks or bonds they issue. Mutual fund companies are required to disclose the risks and costs associated with buying shares in the fund.

Government regulatory agencies, such as the Securities and Exchange Commission (SEC), self-regulating organizations, state securities regulators, and NASD require such disclosures.

Similarly, federal and local governments require lenders to explain the costs of credit, and banks to explain the costs of opening and maintaining an account.

Despite the consumer benefits, disclosure information isn't always easily accessible. It may be expressed in confusing language, printed in tiny type, or so extensive that consumers choose to ignore it.

References in periodicals archive ?
Delivery may be effected by email or pre-paid courier; however, if a disclosure document is to be delivered by way of a prepaid courier, the franchisor must ensure that the method of delivery allows for tracking and confirmation of receipt of the disclosure document by the prospective franchisee, which is not a requirement in the other provinces that provide for delivery by prepaid courier.
The POS disclosure document should be clear, fair, not misleading and written in a plain language designed to be understandable by the consumer.
The new Safe Harbor Disclosure document follows enhancements to LoanSifter's product suite that enable clients to customize and report on their own loan officer compensation plans, thus providing the tools to better manage compliance.
The disclosure document would be a way for consumers to begin to get more information on what they are buying by asking the advisor additional questions or by electronically accessing more information, according to Bartell.
The Act gives a franchisee a private right of action for damages against the franchisor and every person who signs the disclosure document if the franchisee suffers a loss because of a misrepresentation contained in the disclosure document.
Firstly, if a franchisor's disclosure documents contain a "misrepresentation" and if the franchisee suffers a loss because of the misrepresentation, the franchisor and all those who signed the disclosure document may be sued by the franchisee.
In addition to the governmental entity issuing municipal securities, public officials of the issuer who have ultimate authority to approve the issuance of securities and related disclosure documents have responsibilities under the federal securities laws, as well.
A business opportunity seller who doesn't make an earnings claim simply has to check a box "no" on the disclosure document.
The separate disclosure document spells out the arrangement between the solicitor and the investment adviser.
com/research/pk54gc/2012_papa_johns_f) has announced the addition of the "2012 Papa John's Franchise Disclosure Document (FDD)" company profile to their offering.