Summary: The Securities and Exchange Commission's (SEC) goal is to disclose time-sensitive information about securities, such as takeover offers or purchases of more than five percent of a company's stock, to the public within one hour of receipt. During the first quarter of 1993, however, SEC sometimes took two business days or longer to reveal information it had received on changes in stock ownership. Nearly all of these delays occurred when documents were mailed to SEC and processed by SEC mail room personnel, who have little understanding of the time-sensitive nature of this material. The guidance they receive does not provide for the prompt delivery of this information for release to the public. Consequently, the public often ends up making investment decisions without the benefit of important securities market information. Although SEC has since changed its mail room procedures to improve the handling of time-sensitive information, it may want to consider additional alternatives, such as requiring all time-sensitive filings to be delivered to SEC's Document Control Unit.
