Selective Vs Full Disclosure

Selective Disclosure

When a public company discloses material information to a selected group of people, usually analysts and institutional investors, before making the information known to the public. This practice creates the opportunity for a form of insider trading and also creates conflicts of interest for securities analysts. In 2000, the SEC adopted Regulation FD to end the practice of selective disclosure.

Full Disclosure

SEC regulation adopted in 2000 that eliminated the practice of selective disclosure. The rule requires that when a public company chooses to release any information, it must be done in such a way that the general public has access to it at the same time as institutional investors and analysts. If information is accidentally released to specific parties, the company must disseminate that information widely within 24 hours.