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Investments glossary

Full Disclosure


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Quotes of the day:

I believe that the great Creator has put ores and oil on this earth to give us a breathing spell. As we exhaust them, we must be prepared to fall back on our farms, which is God\'s true storehouse and can never be exhausted. We can learn to synthesize material for every human need from things that grow.

— George Washington Carver

Full disclosure is the U.S. Securities and Exchange Commission’s (SEC) requirement that publicly traded companies release and provide for the free exchange of all material facts that are relevant to their ongoing business operations. Full disclosure also refers to the general need in business transactions for both parties to tell the whole truth about any material issue pertaining to the transaction. For example, in real estate transactions, there is typically a disclosure form signed by the seller that may result in legal penalties if it is later discovered that the seller knowingly lied about or concealed significant facts.


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