Thursday, October 13, 2005

Disclosure or Corporate Puffery

Investors suffer from information overload. Press releases are issued like rounds from a Gattling Gun. Some information is Reg FD oriented and of interest to the investor. Other information is corporate puffery designed to impress clients or suppliers. It probably confuses the investor. How is an investor to know what to pay attention to? The classic noise vs. substance conundrum. Important releases are to be filed with SEC and Edgar. But not all releases are labeled as having been so filed. This creates a grey area, which is too broad for an investor to monitor. If you cannot see it how will you possibly react?

Is their some way that an investor can identify a press release as being issued under Reg FD or other securities regulations without having to go to EDGAR or other government repositories?

I put this question to the SEC by email. Awaiting the response.