Business and Personal Finance Dictionary

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• DISCLOSURE
  
  A disclosure document explains how a financial product or offering works, the terms to which you must agree in order to buy it or use it, and, in some cases, the risks you assume in making such a purchase. For example, government regulatory agencies like the Securities and Exchange Commission (SEC) and self-regulating organizations like the National Association of Securities Dealers (NASD) require publicly traded corporations to provide all the information they have available that might influence your decision to invest in the stocks or bonds they issue. Mutual fund companies are required to disclose the risks associated with buying shares in the fund. Similarly, federal and local governments require lenders to explain the costs of credit, and banks to explain the costs of opening and maintaining an account. Despite the consumer benefits, disclosure information isn't always accessible, because it is either expressed in confusing language, printed in tiny type, or so extensive that consumers choose to skip over it.
  
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