"Analyst should also be alert to the possibility that they are selectively receiving material nonpublic information when a company provides them with guidance or interpretation of such publicly available information as financial statements or regulatory filings."
I have come across the above sentence and talked with my friends for quite a long time.
They believe that it was the company that was performing selectivity and the analyst was just passively receiving what were offered.
However I think it was the analyst that was actively performing selectivity, deliberately or indeliberately accepting and rejecting some information.
If the analysist should be alert to the possibility, then it suggests to me that the company are being selective in the material they send. It's a bit of a clumsy phrase, so I can see the problem, but the flow of information is from the company- guidance and interpretation.
Analyst must be particulaly aware of information that is selectively disclosed by corporations to a small group of investors, analysts, or other market participants. Information that is made available to analysts remains non-public until is made avaailable to investors in general. Corporations that disclose information on a limited basis create the potential for insider-trading violation.
Issues of selective disclosure often arise when a corporate insider provides material information to analysts in a briefing or conference call before that information is released to the public. Analyst must be aware that a disclosure made to a room full of analysts does not necessarily make the disclosed information "public". Analyst should also be alert to the possibility that they are selectively receiving material nonpublic information when a company provides them with guidance or interpretation of such publicly available information as financial statements or regulatory filings.
If you look at the first line, it says 'information that is selectively disclosed by corporations', which suggests that the selection comes from the corporation. If an analyst receives information that is non-public, there is a risk that there analysis will use this information before it is made public, which lays the company open to insider trading charges. The financial statements, etc, are public, but there is a selection process, which in the wider context appears to refer to th people who receive the information, rather than the information they receive. However, I stil think that the company, who choose the analysts to present the information to, is still in charge of the selectivity.