Disclosure Principles

Disclosure of Financial Information


Publicly traded companies should have an obligation to disclose monthly sales reports to the financial press. Sales-R-Us is not an exception. It is in Sales-R-Us’s best interest to preserve active and direct communication with the financial press, shareholders, and potential investors regarding Sales-R-Us’s historical performance and future opportunities. Sales-R-Us can increase shareholder value by publicly outlining its strategies, strengths, and growth prospects. In addition to the requisite quarterly reports that must be filed, Sales-R-Us should disclose monthly sales reports that clearly explain operating revenues and expenses. Financial analysts and investors can use this information to make educated quarterly forecasts of the firm, its growth prospects, and understand more about a company they may possibly invest in.
Obviously disclosure is a double-edged sword. If a company’s s...