Blogs widgets cell phones
HDTV Hulu digital cameras
DVR MySpace social media
Flip Face Book webcasts
MP3 You Tube spiders
iTunes Plaxo text messaging
iPod LinkedIn video on demand
iPhone Second Life streaming video
Apps Wikipedia email
WIFI Flicker SMS
GPS Yahoo cloud computing
Kindl Pandora cyberspace
Bing Shazam crowdsourcing
Wolfram Alpha Android
10-K filings by one company
1996 263 pages
1999 265 pages
2009 1,376 pages
“I read a few prospectuses for residential-mortgage-
backed securities – mortgages, thousands of
mortgages backing them, and then those all
tranched into maybe 30 slices. You create a CDO
by taking one of the lower tranches of that one
and 50 others like it. Now if you’re going to
understand that CDO, you’ve got 50-times-300
pages to read, it’s 15,000. If you take one of the
lower tranches of the CDO and take 50 of those
and create a CDO squared, you’re now up to
750,000 pages to read to understand one
Warren Buffett, Fortune Magazine, April 8, 2008.
A weekday edition of The New York
Times has more data than the
average person in 17th-century
England would encounter in a
The Nov. 13, 1987 edition of The New
York Times contained over
12,000,000 words and weighed 12
In 2006, companies used 301 forms
to file 740,995 copies of required
disclosure with the U.S. Securities
and Exchange Commission.
Of these 301 forms,14 accounted for
77% of all filings.
Field 9 production increased by
10,000 barrels per week.
Profits increased 4.6%.
Interest expenses declined 3.2%.
What do these mean?
Answering this question produces
information. Using that information
This is a financial statement from ca. 2270BCE.
See Part II.
We are moving from a top-to-down
world to a bottom-to-up world.
Digital music: create your own albums
DVR: no scheduled television
Netflik: movies when you want
Pandora: create you own radio station
Once you have reduced something
to 1’s and 0’s, you can do
anything you want with it.
And just about anything can be
We are living in a user-created
A 2005 study by the Consumer
Federation of America found
Over 70% between the ages of 18 to 44
61% between 45 to 54
45% between 55 to 64, and
24% of those over 65
use the Internet to carry out transactions.
Disclosure today is top down
and paper-driven in a bottom
up, digital world.
Too many investors are driving
a Model T in a Formula One
Transparency is data in a format
that investors can use to create
the information they want.
We should move from a paper-
based to an electronic-based
disclosure and data system.
It should provide investors with tools
so they can use that data to create
the information they want.
Data and capital have been reduced
to 1’s and 0’s.
Data and capital are boarderless.
They flow everywhere.
The world capital markets now
function as one market.
Financial data is being standardized
with the merging of GAAP and
Data must be interactive.
In 1946 0.005% of US households had
In 1962 90% had a TV
From 1997 to 2007, there were 97 cell
phones per 100 inhabitants in the
1997 – 48,000 PCs manufactured
2001 – 125 million
2007 – 264 million
In 2009, North American wireless networks
carried about 17 petabytes every month,
equal to 1,700 Libraries of Congress.
By 2014, this amount is projected to be 740
petabytes per month.
A petabyte is one quadrillion
Number of apps for the iPhone:
Number of apps for the Android
Around 1439 Gutenberg developed
By the end of the 15th century there were
217 printing presses in 6 countries.
An estimated 8 million books were
printed in the first 50 years.
The shift from paper and printing to digital
and electronic is as profound,
fundamental, and far-reaching as the shift
from oral to print in the 15th century.
It took about 100 years for society to absorb
that change. The change today will be
The defendant says, and the SEC agrees,
that the information was disclosed in public
documents, yet the SEC maintains that this
disclosure did not meet the legal
requirements for disclosure. “The SEC says
those documents were too obscure and
difficult to understand to qualify as adequate
The Wall Street Journal, September 3, 2010
“Disclosure isn’t disclosure if
it doesn’t communicate.”
Arthur Levitt, Chairman
U.S. Securities and Exchange