By: Todd Shields
New Rule Only Affects Stock Analysts
by Todd Shields
A federal rule aimed at stopping companies from whispering choice
tidbits to a few stock analysts will not undermine business
That word comes from senior officials at the U.S. Securities and
Exchange Commission, which redrafted Regulation FD, for Fair
Disclosure, before adopting it by a 3-1 vote last week.
Some business editors had said the rule could leave executives loath
to talk to reporters, since interviews might be seen as improper
sharing of nonpublic information. SEC officials said they had narrowed
the rule to make clear it affects communications with security
industry analysts – not the press.
Officials also said companies could not simply post announcements on a
Web site and consider that to be adequate public notice. The
old-fashioned press release is still required.
Todd Shields (firstname.lastname@example.org) is the Washington
editor for E&P.
(c) Copyright 2000, Editor & Publisher