Since the beginning of the Great Financial Crisis, I have talked to hundreds of economists and lawyers who believe the myth too much disclosure confuses investors.  Have these economists and lawyers never heard of experts?

Everyone knows investors like a good story.

Everyone also knows the purpose of disclosure is it allows investors to verify if the story Wall Street tells is true or not.

What these economists and lawyers appear to miss is there is no requirement that every investor verifies the investment story themselves.  The investor is free to hire an expert they trust to verify the investment story for them.

Do investors do this?

Just look at how many trillions of dollars are professionally managed by firms like Fidelity, Vanguard or BlackRock.  Or how many hundreds of billions of dollars are professionally managed by hedge funds or private equity funds.

Investors know in exchange for paying a fee for the management of their investments, these firms either have or hire the experts who are capable of understanding and making sense out of any information an issuer discloses.