Business journalists will be watching closely when a federal rule meant to prompt broader disclosure of information by publicly traded companies takes effect Oct. 23.
Regulation FD (Fair Disclosure) bars companies from selectively releasing information. It’s meant to stop insider whispering that can move stock prices.
The rule won’t affect old-fashioned enterprise reporting about companies, but it could squelch the hand-delivered mergers scoop, said Jonathan Lansner, a financial columnist for The Orange County Register in California. Lansner said implications will become more clear over several months, as federal authorities decide how to interpret and enforce the rule.