Question

REGARDING RISK ASSESSMENT

What are the different types of disclosure or brokerage of information?
What is the probability of disclosure/brokerage of information (in terms of high, medium, low)? What is the potential impact of disclosure/brokerage (in terms of high, medium, low)? Explain. Determine the risk scale of disclosure/brokerage of information.

PLEASE MAKE COPY PASTE AVAILABLE

MUST BE 250 WORDS

Answer 1

Disclosures is the process of making facts or information known to the public. Proper disclosure by corporations is the act of making its customers, investors, and any people involved in doing business with the company aware of pertinent information.

Disclosures are at the center of the public's crisis of confidence when it comes to the corporate world. They should be viewed as a very important and informative part of doing business with or investing in a company. This article will define disclosure and show why it's important as it relates to companies and investors.

In the investing world, corporations issue disclosures to provide investors and investment analysts with information that could influence an investor's decision whether to buy a company's stock or bonds. The disclosure statement can reveal negative or positive news and financial information about the company.

Investment research reports also disclose the nature of the relationship between the equity analysts, their employer, such as the investment firm, and the company that is the subject of the research report–called the subject company. It also provides critical facts that investors should be aware of, such as warning-like statements.

The Securities and Exchange Commission (SEC) requires that all research reports contain a disclosure statement.1 If you are reading a research report that does not have a disclosure statement, you should disregard it, as it can not be trusted.

The disclosure is as important to a research report as footnotes are to a corporate financial report. Footnotes are used by corporations to provide investors with details of specific financial line items within the company's financial statements.

Disclosures appear at the end of a research report and usually in very small print, like footnotes to a 10-K, which is a company's annual financial report. It may take a magnifying glass and a strong cup of coffee, but when reading a disclosure, investors should be able to determine who "paid" for the research report and the degree of objectivity that may, or may not, be present.