As a general rule in a business transaction, for example, in a real estate transaction, full disclosure refers to the obligation which requires both parties to disclose the whole truth regarding any significant aspect of a business transaction.
As the requirement of the Securities and Exchange Commission (SEC), full disclosure refers to a mandatory obligation, and publicly traded corporations disclose all material information that is pertinent to their currently underway business operations and allow for the free exchange of that information.
[Last updated in January of 2023 by the Wex Definitions Team]