The study identifies investor perceptions and preferences regarding a variety of investment disclosures, and indicates investors prefer to receive investment disclosures before investing, rather than after.
The study also identifies information that investors find useful and relevant including information about fees, investment objectives, performance, strategy, and risks of an investment product, as well as the professional background, disciplinary history, and conflicts of interest of a financial professional.
The report found in general retail investors lack basic financial education. From the report highlights:
Studies reviewed by the Library of Congress indicate that U.S. retail investors lack basic financial literacy. The studies demonstrate that investors have a weak grasp of elementary financial concepts and lack critical knowledge of ways to avoid investment fraud.Read more.
Read the SEC staff study.
Help Teach Basic Financial Literacy
More than 123,000 bankers have worked with the ABA Education Foundation to teach basic financial skills to some 5.2 million young people through participation in the Foundation's signature programs, Teach Children to Save and Get Smart About Credit. The Foundation provides financial education programs and resources that help bankers make their communities better.
Read more about the Foundation’s programs and resources.