Walking the disclosure tightrope in today's marketplace.(Government Activity)(Brief Article)

In today's market, public companies walk a tightrope, attempting to balance the often competing interests of regulatory disclosure requirements, the market's insatiable demand for information and the corporation's desire for coverage by brokerage firm analysts. A company's communications with an analyst are an important mechanism, moreover, by which the company's business performance and prospects are evaluated for the brokerage firm's clients. Yet fostering good analyst relationships should not extend to selectively providing material information not otherwise available to the public.

The practical observance of these competing interests can be difficult. A company may be confronted with analysts who call frequently to create a dialogue that expands upon public disclosures and that probes for a "scoop" …