Fannie Mae Preferred S (FNMAS)

[44centsAKAchoccake]

Pretty funny WSJ story. The SEC disclosure law essentially requires that prospectuses disclose the facts of the matter. If the prospectus is fraudulent, that's sufficient.

WSJ story

http://www.wsj.com/articles/fannie-and-freddies-missing-testimony-1427325569

"Ruling out evidence of Fan and Fred’s knowledge of the market and the particular loan pools they bought allows the judge to treat the toxic twins as babes-in-the-woods abused by banks. This makes a mockery of the securities laws, which are intended to ensure that investors have access to relevant, material facts about a potential investment. Can other investors now sue by pretending not to know information and then claiming it was withheld from them?"


DEFINITION OF 'FULL DISCLOSURE'
1. 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.

2. The general need in business transactions for both parties to tell the whole truth about any material issue pertaining to the transaction.

INVESTOPEDIA EXPLAINS 'FULL DISCLOSURE'
1. The SEC requires full disclosure from companies that wish to be publicly traded on the major U.S. exchanges. By enforcing this rule, the SEC attempts to instill confidence in investors that the financial marketplace is efficient and transparent so that individual investors can take part in it for material profit.

2. For example, in real estate transactions, there can often be a disclosure form that is signed by the seller. Signing this form can result in legal penalties if it is later discovered that the seller knowingly lied about or concealed significant facts.