Definition of disclosure

information given as an attachment to the financial statements in footnote or supplementary form. It provides an elaboration or explanation of a company's financial position and operating results. Explanatory information concerning an entity's financial health can also be disclosed in the audit reportAnything that is material should be disclosed including quantitative (e.g., dollar components of inventory) and qualitative (e.g., lawsuit) information helpful to financial statement users. The SEC also requires special disclosures in filings with it. For example, any sudden significant happening affecting a company's financial position (e.g., Three Mile Island nuclear accident) must be disclosed in Form 8-K.

1. Banking.Information on credit terms required by federal or state laws to give their customers. Disclosure is normally required in all consumer loans and residential mortgages. Items subject to disclosure are the finance charge expressed as the Annual Percentage Rate (APR), method of interest rate computation, minimum monthly payment, and also procedures for error resolution in billing disputes. Banks also must disclose the reason for a turndown when rejecting a consumer loan application.
2. Securities.The release of relevant information to a buyer of securities. The Securities Act of 1933 and other regulations require issuers to give buyers sufficient information to make an informed decision. It is up to the customer to evaluate the information and make a purchase decision. The SEC and securities exchanges do not care what is sold, only that all the relevant information is presented to the buyer.
3. Accounting.A fact or condition stated on the balance sheet or in footnotes. See also market discipline.

release by companies of all information, positive or negative, that might bear on an investment decision, as required by the Securities And Exchange Commission and the stock exchanges.

release by companies of all information, positive or negative, that might bear on an investment decision, as required by the Securities and Exchange Commission and the stock exchanges.