Days of whispering are over on Wall Street


Wednesday, October 25th 2000, 12:00 am
By: News On 6


The days of whispers and winks on Wall Street are coming to an end thanks to a new regulation by the Securities and Exchange Commission. How can that fact help small investors?

The Fair Disclosure regulation requires companies to report possible market-moving news to the public at the same time they report it to analysts and large institutions. The chairman of the S-E-C says in the past, a company would share information to selected analysts. By the time the public knew what was going on, a vast number of shares could have already been traded. " The purpose of this rule is to level the playing field, and see to it that the individual investor has the same opportunities as the large institution guys,” said Arthur Levitt, S-E-C chairman.

Some critics say companies may cut back on the amount of information they make available out of fear of violating the new rule.