Published by Jessica Weisman-Pitts
Posted on January 5, 2023
4 min readLast updated: February 2, 2026
Add as preferred source on Google
By Anna Foster, senior writer at verbal branding agency Reed Words
When you write in ‘plain English’, you use simple words, short sentences, clear headings and concise paragraphs. But it’s something finance and legal departments can struggle with, as they rely on jargon to communicate complex messages.
Simple writing needn’t change or simplify what you’re trying to say. Instead, it just means more people will understand your writing quickly and easily.
The first rule of copywriting is to think about your reader. They could be reading in a hurry. They may find reading difficult, or don’t speak English as their first language. (Or they might be an expert in your subject – but even experts appreciate simple language.)
Why are we talking about financial and legal language now?
Plain language isn’t a new idea. In fact, its supporters date all the way back to the 16th century. In 1596, a British chancellor cut a hole in a 120-page court document he thought was too long. He then ordered the lawyer who wrote it to stuff his head through the hole. The unfortunate chap was paraded around Westminster Hall for everyone’s amusement.
More recently, New Zealand passed a bill to make sure its government speaks clearly. Members say this will strengthen democracy by helping people understand their rights and what they’re being asked to do. It’s also a priority for the UK government, as shown with guidance on gov.uk that says content should be clear, meaningful and trustworthy. The same is true across many other organisations, including Transport for London, which asks for everyday words instead of jargon or official-sounding terms for its internal and external communications.
Plain English is good for government. But is it good for business?
In a word: yes. In the financial and legal worlds, research suggests simple writing offers significant returns on investment. In a 10-K annual performance report, plain writing attracted more investors and saved money and time spent on audits. Another study found that when the readability of a fund’s annual report slightly dropped, the fund reduced in market value by 2.5%.
Cornell accounting professor Kristina Rennekamp discovered something similar: simple writing ‘increases investors’ beliefs that they can rely on the information’. In other words, it made investment advice more convincing and trustworthy.
Simple language can save money and time in the legal and financial spheres, too. GE Aviation found that when a contract left out legalese and financial jargon, the time it took to negotiate fell by 60%.
What are some ways to simplify legal and financial language?
Free resources like Hemingway App are useful to check the readability of your writing. Here are a few other ways to make sure legal and financial language is as accessible as possible:
Asset ➡ Investment ➡ Security ➡ Equity ➡ Stock ➡ Common stock ➡ One share of IBM common stock
Finally, think about getting a fresh perspective. You might be so immersed in your world that you can’t recognise what’s complex and what’s straightforward. And that’s where Reed Words can help.
Plain language refers to writing that is clear and straightforward, avoiding jargon and complex vocabulary to ensure that the message is easily understood by a wide audience.
Jargon is specialized language used by a particular profession or group that may be difficult for others to understand. It often includes technical terms and abbreviations.
Readability is a measure of how easy a piece of writing is to read and understand. It considers factors like sentence length, word complexity, and overall structure.
An acronym is a word formed from the initial letters of a series of words, often used to simplify complex terms. For example, 'NASA' stands for National Aeronautics and Space Administration.
A 10-K report is a comprehensive annual report filed by public companies with the SEC, detailing financial performance, risks, and business operations.
Explore more articles in the Finance category
