Definition of Full disclosure:
Patenting: Basis under which a patent is granted. All material facts must be disclosed in the patent application, any deviation from this rule may render the patent null and void.
Full disclosure is the U.S. Securities and Exchange Commission's (SEC) requirement that publicly traded companies release and provide for the free exchange of all material facts that are relevant to their ongoing business operations. Full disclosure also refers to the general need in business transactions for both parties to tell the whole truth about any material issue pertaining to the transaction. For example, in real estate transactions, there is typically a disclosure form signed by the seller that may result in legal penalties if it is later discovered that the seller knowingly lied about or concealed significant facts.
(Especially in legal cases, business transactions, etc.) the disclosure of all relevant information, without the withholding of significant facts which may bias a decision.
Full disclosure laws began with the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC combines these acts and subsequent legislation by implementing related rules and regulations.
Accounting: Principle under which all material facts (whose non-disclosure may render a financial statement misleading) must be disclosed.
How to use Full disclosure in a sentence?
- The Euro suffered in 2011 and 2012 because Greece and Spain did not employ full disclosure when applying to enter the Euro zone in the preceeding years.
- You must always give out all the information you have any time you will be working under full disclosure with someone.
- The man promised full disclosure and that made me trust him more and I wanted him to be someone that I could talk to anytime.
Meaning of Full disclosure & Full disclosure Definition