BUS 431HW6 - Homework 1) The purpose of Regulation Fair...

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Homework 1) The purpose of Regulation Fair Disclosure (Regulation FD) is to provide a requirement to make nonpublic information, which might otherwise not be disclosed, available to the markets. This helps to prevent selective disclosure of information and makes sure that everyone gets the same information. 2) The historical background of the regulation was that the SEC had reviewed many public reports and saw that many issuers were not disclosing certain aspects of information to all that it should be available to. The SEC saw that the people who had access to this information, such as analysts or selected investors, were able to still make a profit or avoid losses at the expense of the people who were not also given the information. 3) The public comment to the regulation was very extreme. Over 6,000 comment letters were received and the vast majority of the responses were from individual investors who were almost uniformly for adopting the regulation. These people, and rightly so, felt they were at a major disadvantage in the marketplace. The
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This note was uploaded on 07/12/2011 for the course BUS 101 taught by Professor Noname during the Spring '11 term at Albany State University.

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BUS 431HW6 - Homework 1) The purpose of Regulation Fair...

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