Watch That Prospectus Prose

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Some of it might be on the blacklist in Britain. After all, you might write something that would induce investors to buy your securities. Something evil could be scripted. Hypnotizing hapless widows and orphans and causing them the tender over their life's savings. You know, something like "liquidity." Or "equity."

Liquidity, equity and stabilization are "grandiose or ambiguous" words that shouldn't be used in investment brochures, Britain's financial regulator said.
Short, punchy sentences with sub-headings and colored graphs should replace swathes of text, the Financial Services Authority said in a paper. Too much data is as bad as no information at all as it deters customers from properly reading documents, the London-based agency said.

FSA Now Regulates Words: Bans Liquidity, Equity in Prospectuses [Bloomberg]

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