Definition
Regulation Fair Disclosure (Reg FD) is an SEC rule requiring public companies to disclose material information to all investors simultaneously, rather than selectively to analysts or institutional investors. Before Reg FD (enacted 2000), companies often gave preferential information access to Wall Street. Now, any material disclosure must be made publicly through press releases, SEC filings, or webcasts. This democratized information access, though critics argue it reduced information quality as companies became more scripted in communications.
Example
If a CEO inadvertently discloses material information during a private meeting, the company must promptly issue a public press release. Earnings calls are webcast so all investors can access management commentary simultaneously.
FAQ
What is Regulation FD?
SEC rule requiring companies to disclose material information to all investors simultaneously.
Why is Regulation FD important?
Regulation FD helps investors evaluate regulatory and make more informed decisions.