A more thorough explanation:

Full disclosure is a term used in business transactions that requires both parties to reveal all important information about the transaction. This means that neither party can hide any important details that could affect the outcome of the transaction.

For example, in a real estate transaction, the seller must disclose any known defects or issues with the property, such as a leaky roof or faulty plumbing. The buyer must also disclose any information that could affect the transaction, such as their ability to obtain financing.

In the context of publicly traded corporations, full disclosure refers to the requirement that companies disclose all material information that could affect their business operations. This includes financial information, such as earnings reports and balance sheets, as well as non-financial information, such as legal disputes or changes in management.

For instance, if a company is planning to merge with another company, they must disclose this information to their shareholders. This allows shareholders to make informed decisions about whether to buy, sell, or hold onto their shares.

Overall, full disclosure is important because it promotes transparency and fairness in business transactions. By requiring both parties to reveal all important information, it helps to prevent fraud and ensure that all parties are making informed decisions.