News – Can there be a time when too much disclosure is bad for the market?

Do you really think that market nowadays if really “free”? For those really think that stock market is a “free market” and all brokers, banks and big institutions like an angle by disclosing all relevant information pertaining the transaction they are going to execute into the main media for all of us “humble” being to read and digest, then you don’t really believe in this statement “money is power”, is it? If you don’t believe in “money is power”, you also believe that the main stream media today practice responsible journalism and free speech.

Perhaps one way to address the problem is to prohibit companies from disclosing these so-called “indicative offer prices” until the offer is actually made.

That, however, is against the concept of full disclosure.

If there are parties related to the potential buyer who are taking advantage of the indicative offer pricing in place by selling their shares, then that’s a different matter for the authorities to investigate.

To merely ban the disclosure of indicative offer pricing information isn’t the way to deal with that. It will lead to unnecessary complications. And where would we draw the line? Should the company even be disallowed from disclosing the planned method of takeover, considering different methods of takeovers appeal to different investors?