alleryStart learning →What does Regulation FD require of public companies?
ATo publish their results within two days
BTo register every trade with the exchange
CTo share information with all investors at once
DTo disclose the holdings of every large investor
Answer & Solution
Correct answer: C. To share information with all investors at once
1. The SEC issued Regulation FD, standing for fair disclosure, in October 2000.
2. It was one of a set of new regulations designed to restore public trust after corporate scandals hurt thousands of investors.
3. It requires public companies to share information with all investors at the same time.
4. The effect is to level the information playing field, so no group of investors learns market-moving news ahead of the rest.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.7 Buying and Selling at Securities Exchanges_
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