What Disclosures Mean in Plain English

What Disclosures Mean in Plain English:

According to Webster's Dictionary, the definition of "disclose" is "to uncover or reveal." In research reports, a disclosure is a statement that reveals the nature of the relationship between the analysts, their employer and the company that is the subject of the research report (also known as the "subject company"). It also provides other warning-like statements that investors should be aware of.

Is closures appear at the end of a research report and usually in very small print, like footnotes to a 10-K. A disclosure contains important information on the relationship between the analyst, the brokerage firm that employs him or her and the subject company. 

The bad thing about disclosure statements is that they are quite often written by lawyers who are more concerned about protecting the brokerage firm than providing easy-to-read information.

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