What is continuing disclosure?

• A. A one-time disclosure at issuance.
• B. Ongoing information provided by an issuer after the offering to keep investors informed about material events and financial condition.
• C. A regulatory filing required by issuers every quarter.
• D. A public press release about the issuer's annual budget.

Answer: (B)

Continuing disclosure is the ongoing obligation of an issuer to provide investors with information after a bond is issued. It includes annual financial information and audited financial statements, plus timely notices of material events that could affect the securities or the issuer’s financial condition. This information is typically delivered under a continuing disclosure undertaking and filed with EMMA to keep investors informed about changes in financial condition, defaults, ratings actions, lawsuits, bond calls, and other material events. It’s not a one-time disclosure at issuance, nor is it limited to quarterly regulatory filings or merely a public budget press release—the emphasis is on continuing, timely information about the issuer and the securities.