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In this lesson, Ranie from Finance Strategist explains the non-disclosure agreement (NDA), a common contract used by employers to prevent the disclosure of confidential information by outsiders. Companies often need to share sensitive data, like profit margins, with external parties such as consultants for assistance. The NDA aims to protect a company's valuable intellectual property, including patents, trade secrets, customer lists, production methods, and marketing knowledge. An NDA typically includes four major components: the definition of confidential information, how a person can recognize this information, the duration of the confidentiality obligation, which can extend indefinitely, and other relevant terms.
