Companies who rely on form 8-K to satisfy the SEC’s new disclosure rules may miss an opportunity get their message across to shareholders. Eileen Morcos-Rauchberg, vice president of financial communications at Hill & Knowlton’s Los Angeles office recommends companies look beyond the letter of the law. “Step back and ask yourself how would prudent investors perceive this piece of news? How would they trade on it?” she says. Despite the SEC’s campaign to promote plain English in filed documents, many 8-Ks contain legalese that can confound both institutional and retail investors. “If you don’t provide interpretation by a press release, you’re going to get people selling based on information they don’t even understand,” she says.
Claes
