The Prospectus Tries Plain Speaking

When Arthur Levitt Jr. became chairman of the Securities & Exchange Commission, he sold his individual securities and invested in mutual funds. That's when Levitt had his first encounter with the horror that millions of investors face: the fund prospectus. This long and often abstruse legal document purports to explain how the fund invests and operates. "I had spent most of my life in the investment business," he says, "and I had difficulty understanding some of it."

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