Keywords
mutual fund prospectuses, investor readability, financial disclosure
Abstract
Some regulators believe that the average investor has a hard time reading the statutory prospectuses mutual funds distribute. In the words of the Securities and Exchange Commission (SEC), “Prospectuses are often long . . . Too frequently, the language of prospectuses is complex and legalistic, and the presentation formats make little use of graphic design techniques that would contribute to readability.”1 Partly as a result, two- thirds of investors do not read the prospectus before purchasing mutual fund shares (Investment Company Institute 2006).
Original Publication Citation
“How Does Simplified Disclosure Affect Individuals’ Mutual Fund Choices?” 2011. In David A. Wise, editor, Explorations in the Economics of Aging, University of Chicago Press, pp. 75-96 (with John Beshears, James J. Choi and David Laibson). http://www.nber.org/chapters/c11933.pdf
BYU ScholarsArchive Citation
Beshears, John; Choi, James J.; Laibson, David; and Madrian, Brigitte C., "How Does Simplifi ed Disclosure Affect Individuals’ Mutual Fund Choices?" (2011). Faculty Publications. 9051.
https://scholarsarchive.byu.edu/facpub/9051
Document Type
Peer-Reviewed Article
Publication Date
2011
Publisher
University of Chicago Press
Language
English
College
Marriott School of Business
Department
Finance
Copyright Use Information
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