Disclosure is the act of making facts or information known to the public. In business, 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. In the financial world, disclosure refers to the timely release of all information about a company that may influence an investors decision. In real estate, a sellers disclosure is a legal document that requires sellers to provide previously undisclosed details about the property’s condition that prospective buyers may find unfavorable.

Key features of disclosure include:

• Transparency: Disclosure increases transparency in the corporations’ operations and management, making it easier for investors to make informed decisions.

• Relevance: Disclosures contain essential and critical information about the terms and conditions, terminologies used, and the main agreement between the parties in clear and straightforward language.

• Timeliness: Substantive changes to a companys financial outlook must be released in a timely fashion.

• Protection: The sellers disclosure statement can protect sellers from being sued by buyers after the sale is complete.

Disclosures are important because they help investors make informed decisions and choose stocks or bonds that may suit their investment needs and investment portfolio. They also prevent agents with "inside information" in the market from misusing it for personal gain and profit. However, disclosures can be complicated and difficult to decipher, making it extremely complicated for investors not belonging to the field to make sound investment decisions.