The rule stems from a series of town meetings SEC Chairman Arthur Levitt hosted for investors across the country. At those meetings, many investors complained that companies limited market-moving information to a select group of analysts and insiders. I don't want extra treatment, I just want fair treatment. And the Internet has made it easier and cheaper for companies to accomplish that goal, he says. The democratization of conference calls is the most striking example of the new openness.
Companies typically hold conference calls when they release their quarterly earnings.
Until recently, the calls were limited to analysts and large investors. Opening those calls to all investors was prohibitively expensive, companies said. But today, companies can broadcast their conference calls over the Internet for a small fee. Most still limit questions to analysts. While you probably shouldn't buy or sell a stock based on a single conference call, listening to the calls over time can help with long-term planning.