On October 23rd, SEC regulation FD on "fair disclosure" goes into effect for public companies. Here is information on it.
sec.gov
You can tell by reading it that the lawyers have had, and will continue to have a field day with this one. Sounds like Clinton asking what the definition of "is" is. Hopefully, though, it will help prevent the June 8-9 massacre we all suffered in this stock while those in the know were busy selling on the basis of PERFECTLY-LEGALLY OBTAINED INSIDER INFORMATION. The SEC, in its infinite wisdom, had heretofore entrusted security analysts with interpreting and disseminating this information to us ignorant masses, as we were unable to make heads or tails of complicated and esoteric minutiae like the fact that a company is going to miss its earnings projections by a mile. Thank God we had Mary Mattson around to interpret this information for us, after, of course, a good deal of the blood had already been shed.
But if you read this without your eyes glazing over, you will see that the lawyers have provided loopholes to allow selective disclosure to continue, albeit not as easily.
What is especially galling is the reaction to this rule when it was initially proposed.
>>We also received numerous comments from securities industry participants, issuers, lawyers, media representatives, and professional and trade associations...One fundamental issue raised by these commenters was whether Regulation FD is necessary. Some commenters stated that there is limited anecdotal evidence of selective disclosure. Others suggested that it appears that issuer disclosure practices are generally improving, so that we should refrain from rulemaking at this time, and instead permit practices to evolve and encourage voluntary adherence to "best practices" of disclosure. We do not agree with these views.<<<
Interesting reading. |
