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Definition Of Full Disclosure:


1. The U.
Securitiesand 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. The general need in business transactions for both parties to tell the whole truth about any material issue pertaining to the transaction. The SEC requires full disclosure from companies that wish to be publicly traded on the major U. 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. For example, in real estate transactions, there can often be a disclosure formthat is signed by the seller. Signing this formcan result in legal penalties if it is later discovered thatthe seller knowingly lied about or concealed significant facts.

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