Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Investors Want More (Or Less) In Financial Info

Friday, September 7, 2012 - 11:28 AM
From  Bloomberg: 
Investors who participated in a major study on financial literacy published last week spoke clearly: They want more information, more data, more disclosures.  Except when they want less. They want it formatted in tables and, also, not formatted in tables. They demand that the information be posted online, and will only read it in print.

With contradictory findings like these, the report, by the Securities and Exchange Commission, illustrates just how difficult it will be to make Americans smarter about finance: More disclosure doesn’t always mean better disclosure, and if you ask investors what they want, they don’t necessarily agree or even know how to answer.

[...] “Studies have found that investors do not understand the most elementary financial concepts, such as compound interest and inflation,” they added, citing Library of Congress research. “Studies have also found that many investors do not understand other key financial concepts, such as diversification or the differences between stocks and bonds.”




Read more

 

 
3
pearlbrownpearlbrown1,433 posts since
Nov 2, 2010
Rep Points: 6,255
1. Friday, September 7, 2012 - 12:27 PM
“Studies have also found that many investors do not understand other key financial concepts, such as diversification or the differences between stocks and bonds.”

The difference is: stocks are attached to guns while bonds are attached to bedposts ;<)
5
StewieStewie56 posts since
Jan 18, 2010
Rep Points: 318
2. Friday, September 7, 2012 - 5:45 PM
Nothing surprising here. That's what occurs when you have a country that doesn't educate it's young people about basic finance, let alone how to balance a check book. No wonder so many people fall prey to shysters, make bad investment decisions or pay needless fees and commissions all their lives.
1
ShorebreakShorebreak2,619 posts since
Apr 6, 2010
Rep Points: 14,187
Reply