Disclosure Statement
Categories: Regulations, Investing
A disclosure statement is meant to inform someone who’s getting their own IRA as to what exactly they’re getting into...in plain English. Well, they try.
The plan administrator of your IRA is legally required to give you a disclosure statement at least a week before the IRA is created (or the IRA owner must be given a week to revoke their IRA, either way). This is going to include things like IRA fees, withdrawal and deposit limit rules, penalties for early withdrawal, and special exceptions for early withdrawal.
More generally, a disclosure statement can also refer to a to-the-point document that tells someone all about the loan they just signed up for: the terms and conditions, the amount borrowed, the interest rate, fees, prepayment details, and all responsibilities as a borrower. Legally, lenders must provide disclosure statements to loan borrowers before the loan is given to them.
When you hear “disclosure statement,” your ears should perk up. This is the best they can do sans technical and legal jargon.
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Finance: What is Regulation Full Disclos...43 Views
finance a la shmoop. what is regulation full disclosure or in industry parlance
reg FD ?all those whispery hallways of the 1970s and 80s
insiders muckety-mucks cheaters Liars deceivers key employees on the take [men in suits discuss stocks]
sound like the dramatic cover for a Hollywood movie and while it was and it
was real life as well. the practice of gleaning information
essentially unavailable to the average investor was a large part of the
practice of quote doing research unquote for all too many of the professional by
side investment firms of the era. the regulator's finally noticed and began to
crack down with only modest success for a while when finally reg FD was enacted
via the SEC in 2000. well that regulation massively prohibited the type of
discussions that could legally happen among analysts and company insiders. in
fact disclosure of much more than much more than the company name mailing
address and the product they sold was prohibited unless it was done in a
broadly available and well-publicized public forum that John Q public could [woman gives presentation]
participate in. the goal here was to take away free money or profits or gains from
insiders leaking information you know so that investors could make bets with way
more information on whether or not the roulette wheel of the company's
quarterly performance in earnings was going to in fact land on red twenty
three. so yeah that's what reg FD is about. trust us we've fully disclosed
everything we know about it and we're going modern here. modern era people come
on get with it. [man folds arms inside casino]