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WELCOME TO THE WORLD OF PUBLIC RELATIONS

In financial information, accuracy is imperative. Public relations firms have been held responsible for releasing false and misleading information even though they were told by their clients that the supplied facts were correct. Anyone preparing or releasing financial news is responsible for making a reasonable effort to ascertain that the informa­tion is accurate. You don't have to be an accountant, but you should know how to read a balance sheet and determine if the information presented is logical and reasonable.

□ Words and word-combinations

1. regulations — инструкция, обязательные постановления, установленные правила

1. regulatory — правовой, административно-правовой

2. to enforce regulations — проводить постановления в жизнь, следить за выполнением

3. to issue cease-and-desist orders or injunctions — издавать приказы или по­становления суда о прекращении деятельности

2. to levy fines — взимать штрафы

3. adverse — лживый, противоречащий

8. to file annual and quarterly reports — представлять ежегодные и (ежеквар­тальные отчеты, доклады

9. deletion — уничтожение

10. audited — подлежащее проверке, ревизии

11. stock splits — раскол компаний

12. mergers — слияние, объединение компаний

13. default — невыполнение обязательств (денежных)

14. asset — имущество обанкротившейся фирмы

15. proxy — доверенность

16. accuracy — точность

17. balance sheet — финансовый баланс

В. Often a company is tempted to report only the good news and bury the bad news. Although this sounds like a good idea to executives interested in the image of the corporation, it is dangerous when it comes to financial news.

A company and its public relations firm may be held liable even if each individual release or other statement is literally true when examined separately.

In other words, companies should avoid the temptation to paint a rosy picture of financial stability if in fact there are problems that stockholders and potential investors need to know in order to make an informed judgment. For example, a company should not announce a new product that is still in the research stage and will not be available to the public for another year.

In advertising and publicity the areas where deception can occur are these:

• Unsubstantiated claims — statements that you cannot prove

• Ambiguous claims — statements that are confusing

• Fraudulent testimonials — statements that were never actually made.

• Puffery and exaggeration — stretching the truth

• Deceptive pricing — concealment of true cost