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Making financial disclosures more readable

Firms should incorporate the use of plain English when drafting such documents so that the reader can understand.

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There are many benefits to having disclosures written in plain English. Investors would be more likely to understand the disclosures and to make informed judgments. Investment analysts would also be able to make more timely and accurate recommendations to their clients if they can understand such disclosures more quickly and easily.

FINANCIAL disclosure documents are notoriously difficult to make sense of, even for seasoned investors. Warren Buffett, the guru of investing, spoke for many of us when he said: "For more than forty years, I've studied the documents that public companies file. Too often, I've been unable to

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