Regulation Fair Disclosure (Reg FD)

Regulation Fair Disclosure (Reg FD) is a rule established by the U.S. Securities and Exchange Commission (SEC) in 2000. It aims to promote transparency in financial markets by preventing companies from selectively sharing non-public information with certain investors, like analysts or institutional investors, before disclosing it to the general public. Under Reg FD, companies must publicly announce important material information, ensuring that all investors have equal access to information that could affect the stock price, thus fostering fairness and reducing insider trading risks.