What is the intent of Regulation FD (Fair Disclosure)?

The intent of Regulation FD (Fair Disclosure) is to ensure simultaneous disclosure of material information to all investors. This regulation was established by the Securities and Exchange Commission (SEC) to address the selective disclosure of information by publicly traded companies. Before Regulation FD, companies would sometimes disclose important information to select analysts or institutional investors before it was available to the general public. This practice created an unfair advantage for those with early access to information.

By mandating that all investors have equal access to material information, Regulation FD aims to promote transparency in the securities markets and ensure that all investors can make informed decisions without facing the risk of insider knowledge. This levels the playing field and is crucial for maintaining investor confidence in the fairness and integrity of the markets.

The other answer choices address different aspects of securities regulation but do not capture the core purpose of Regulation FD. For instance, while preventing insider trading is an important regulatory focus, it is not the specific objective of Regulation FD. Similarly, regulation of restricted securities and exemptions for international offerings pertain to other SEC rules and regulations but do not relate to the disclosure requirements enforced by Regulation FD.