New Rule Divides Wall Street

The Regulation Fair Disclosure rule (Reg FD) went in effect on Monday, October 23, 2000. US markets began a new period of open and fair communication. At least that is what regulators hope!

Wall Street met this new rule against selective disclosure leaks with divided opinions.

The Regulation Fair Disclosure (Reg FD) rule is intended to level the investment playing field for the small investor. This regulation will aim to eliminate some of the advantages securities analysts and institutional investors have. It goes to the root of the problem, company executives who give large investors special status over small ones on important issues.

Many believe this rule will have an effect on share prices over time by the fact that there will be less consensus building.

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