Vystar Corp (VYST)

[HMB2010]

Regulation Fair Disclosure (Reg FD)
REVIEWED BY WILL KENTON Updated Jun 28, 2018
DEFINITION of Regulation Fair Disclosure (Reg FD)
Regulation Fair Disclosure (Reg FD) is a rule passed by the Securities and Exchange Commission in an effort to prevent selective disclosure by public companies to market professionals and certain shareholders.

Reg FD states that when a publicly traded company or issuer of stock discloses any material nonpublic information regarding that issuer or its securities to a limited group of individuals, the issuer must make public disclosure of that information. Such disclosures must be made simultaneously if it is an intentional release of information. Non-intentional sharing of such information must be promptly followed with public disclosures.

BREAKING DOWN Regulation Fair Disclosure (Reg FD)
Many companies in the past released important information in meetings and conference calls where shareholders and the general public were excluded. The goal of Reg FD is to level the playing field between individual investors and institutional investors.

Reg FD was created in response to instances when issuers of stock gave advance warnings of earnings results and other nonpublic information to selected institutional investors and analysts. This created circumstances that allowed those with the information to make a profit or avoid losses at the expense of the rest of the investing community.

https://www.investopedia.com/terms/r/regulationfd.asp