Steer clear of jargon

Business stories that confuse readers are stuffed full of numbers, studded with jargon and characterized by rambling sentences.

Defining terms is one way to avoid using jargon. Some¬times technical terms cannot be avoided — “collateralized debt obligations (CDOs)” is a phrase that popped up frequently in the wake of the subprime mortgage meltdown. The New York Times explained it succinctly and clearly:

“Collateralized debt obligations, or CDOs, are created by banks that pool together otherwise unrelated debt-instruments, like bonds, and then sell shares of that pool to investors.”

As with any story, researching the background, getting in-sight from experts in the field and writing clearly are what attract readers.

  • First rule: Understand what you’re writing about

  • Don’t “bluff,” or pretend to know more than you do

  • Count the number of clauses, commas and semi-colons. Try streamlining the writing by simplifying.

A journalist who thoroughly understands the story is more likely to write a clear, focused article, and to concentrate on the points that most interest readers.

Editor's Tip Sheet

Editors can help reporters learn to spot compelling corporate-governance issues in routine business stories. Be alert for the story-behind-the-story in typical business events. Often, they are prompted by deeper corporate-governance issues. (These topics are treated in more depth in previous chapters of the Guide.)

  • Appointments or dismissal of top executives or board members

  • Significant changes in company ownership (share issues and buy-backs; notable owners, including institutional investors; share classes and other changes in the structure or distribution of share ownership; mergers and acquisitions; family ownership to dispersed ownership or privatization)

  • Changes in compensation of top executives or directors

  • Unusual movements in profits and performance that may reveal accounting or financial reporting scandals or demonstrate that the company is well-run

  • New strategic direction for the company, such as entry into new markets or product lines

  • Company is in persistent decline or trouble, which may intensify conflicts within management and the board over how the company can survive

  • Theft, corruption or misuse of company funds

  • Shareholder conflicts with the board and management

  • Disagreements with community leaders, interest groups, vendors or labor over environmental, workplace and public health issues, among others

  • Changes in stock exchange listing rules. What precipitated them and why?