Why must issuers’ nonpublic information be protected from selective disclosure?

• A. To prevent unfair advantages and maintain market integrity.
• B. To speed up trading for all investors.
• C. To minimize regulatory filings.
• D. To increase issuer control over price.

Answer: (A)

Protecting issuers’ nonpublic information from selective disclosure centers on fairness and market integrity. When material information is shared only with certain people, those recipients can trade ahead of others or influence prices improperly, giving them an unfair advantage and eroding investor trust. Releasing such information broadly and promptly helps ensure all investors have equal access to the same facts, reducing information asymmetry and maintaining a transparent, orderly market. The other ideas don’t address fairness and integrity: speeding up trading isn’t the goal, reducing regulatory filings isn’t relevant, and increasing issuer control over price would enable manipulation rather than prevent it.