Euro poses disclosure issues for SEC registrants; US companies are considering whether euro conversion might raise risks they must disclose
The European currency unit is to be introduced as the common currency of the European Union in 1999 and a related disclosure issue for SEC registrants with European activities is emerging. Many of these companies will have expenses, at times significant, as a result of the Euro conversion. Issues include how the currency risk can best be managed between now and Jan 1, 1999, and thereafter; human resources issues such as whether to pay employees in euros or in the national currency; and information systems issues such as the best record-keeping requirements. Legal issues emerge in the areas of contract and antitrust law.
Publication Name: The National Law Journal
Rule 10b-5 and voluntary corporate disclosures to securities analysts
Possible liability under SEC rule 10b-5 discourages corporate officers from disclosure of forward-looking information to securities analysts, which decreases the efficiency of securities markets. To increase efficiency, the duty to update should be limited to information concerning long-lasting change. In addition, selective disclosure to analysts through proper means should be allowed, as held by the US Supreme Court in Dirks v SEC, rather than the equal access policy adopted by the SEC as indicated in SEC v Stevens.
Publication Name: Columbia Law Review
Regulation FD: its creation, its authority, its possible impact
The author discusses the SEC's regulation FD, which it adopted to curtail selective securities disclosure practices.
Publication Name: Securities Regulation Law Journal
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