CHAPTER 16

Transparency

Webster's Dictionary provides multiple definitions of “transparency.” The first is: “Having the property of transmitting light through its substance so that bodies situated beyond or behind can be distinctly seen.”

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Applying this to portfolio disclosure would suggest that each position, the “bodies” of a portfolio, should be explicitly disclosed, or “distinctly seen.”

Another definition of transparency is: “Having the quality of being easily understood, manifest, obvious.” Transparency, then, according to this second definition, shows the important figures while filtering out the subtle details. The increased transparency ...

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