ABSTRACT

Publicly-Traded Firms and COVID-19-Related Disclosures [July 9, 2020]   [open pdf - 549KB]

From the Document: "To restore confidence in the securities markets in the wake of the stock market crash of 1929, Congress passed the Securities Act of 1933 (Securities Act; P.L. 73-22) and the Securities Exchange Act of 1934 (Exchange Act; P.L. 73-291). The Exchange Act created the Securities and Exchange Commission (SEC), a key regulator of various facets of securities markets. The acts generally require companies that issue securities to the general public to publicly disclose data deemed material for investors on both the securities and the issuing firms. Financial disclosures are done quarterly, annually, and on an ad hoc basis for certain developments. Firms also can make certain legally protected, forward-looking predictive comments. The Coronavirus Disease 2019 (COVID-19) pandemic is materially impacting many public firms. In response, the SEC has issued multiple staff guidance regarding possible company disclosures relating to the pandemic's impact. Americans for Financial Reform (AFR), a coalition of groups including the AFL-CIO [American Federation of Labor and Congress of Industrial Organizations] and Public Citizen, has advocated for disclosure requirements, not merely guidelines."

Report Number:
CRS Insight, IN11454
Author:
Publisher:
Date:
2020-07-09
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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