A financial instruments market functions to contribute to the development of the national economy through the proper and efficient connection of asset management via securities by the public and stable, long-term fund-raising via the issue of securities by companies. In order for a market to fulfill this role, it is vital to maintain investors' confidence in the fairness and soundness of the market, as well as provide appropriate information on securities required for investment decisions.
Rules for statutory disclosure (securities registration statement, securities report, quarterly financial reports, etc.) based on the Financial Instruments and Exchange Act and rules for timely disclosure in financial instruments exchanges exist as a means of providing this type of investment information. Timely disclosure rules are established pursuant to the rules of a financial instruments exchange for the purpose of providing investors with important corporate information from listed companies. This type of disclosure is notable for its widespread and timely dissemination to investors, through either the media or direct means.
Because of the large impact corporate information occurring minute-to-minute has on trading, timely disclosure is extremely vital to investors. Particularly, during this period of dynamic changes to the corporate environment where investors need access to accurate information, timely disclosure is becoming increasingly important as a quick, accurate, and fair means of providing the latest corporate information.