http://www.pulitzer.org/year/2007/public-service/works/wsjps18.html
Authors must write articles that appeal to a target audience. Charles Forelle wrote an excellent feature article, “How the Journal Analyzed Stock Option Grants,” for “The Wall Street Journal,” that exemplifies an author appealing to a particular audience. The audience demographic of this feature is obviously business people. First, Forelle writes very well to suit his audience’s interests. Second, he speaks in the mentality and understanding of economists', financiers', and large scale business managers' mindsets. Third, he gives the scientific data, methodology and references that all savvy economists and business people must have to consider such information valid or invalid. Forth, the accused and the accuser's arguements are presented in an unbiased fashion that avoids ostrisizing readers while detailing the methodology used to reach the given conclusions. Forelle created a well written feature article that exemplifies the characteristics of articles that appeal to many people of business and economic interests.
Business people have many generalized characterizations and Forelle capitalizes on two in particular. First, business people are nearly always interested in their investments, particularly if someone is manipulating their earnings or losses that may amount to millions and, at times, billions of dollars. Second, many middle management and higher business officers live extremely hectic lives that often consist of 60+ hour work weeks. Therefore, time is a precious commodity that is in scarce supply. Forelle wrote a concise piece that appeals to his readers interests and time constraints.
Mathematical principals govern much of the knowledge base of Business and Economics. Forelle focuses the meat of the article on detailed statistical information and the methodology for independent calculations. To further encourage his cynical audience, Forelle provides references to leading scholars that support the findings.
Forelle references leading scholars of multiple opinions to provide reporting that can be appreciated by most business and economic readers. Discourse between the two primary opinions could continue to occur after reading this article.
The writing style of Charles Forelle, although boring by many creative measurements, can be considered nearing perfection for an article directed at the cynical, overworked, precise, and discerning population of economists and business people of the United States.
Correction to the article: Forelle states, "The 20-day price rises don't present an immediate opportunity to profit, since options can't usually be exercised until held a year or more." This is inaccurate. According to the regulation specifed by the SEC (Securities Exchange Commision) on http://www.cnh.com/corporate/insider_trading_policy.asp there are many opportunities for financial officers to abuse the trading system, especially the lucrative options market. Financial Officers are banned from trading during "blackout periods." "Each Regular Blackout Period commences three weeks prior to the date that the Company’s quarterly earnings are scheduled to be released and ends on the second business day following the Company’s public release of its quarterly earnings" (5.1). "No Insider may engage in a short sale of the securities under any circumstances" (6.3). Options must be exercised by the third Friday of each month. Whether the option trade was made 3 years or 1 day in advance, the option exercise date is on the third Friday of the specified month. Therefore, the system described by "The Wall Street Journal" to buy options backdated to minimum prices would be completely plausible and possible for insider traders using call options outside of the "blackout periods." "Blackout periods" limit approximately 92 days a year. The rest of the trading days in a year (roughly75%) are fair game for financial fruad, especially when scholars are opposing the statistical system outlined by "The Wall Street Journal" to identify securities fraud.
It also must be noted that the only reason financial fraud using a backdating system is detectable results from the exorbitant greed of its perpetrators. If these perpetrators chose to backdate to a higher price that was still profitable the detection system would become useless.
More information on backdating: http://www.biz.uiowa.edu/faculty/elie/backdating.htm
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2 comments:
Yes, I think you nailed it: this piece is about audience. I'd also add it's about information--definitely news and not narrative.
And it looks like you're a member of its target audience!
Yo Shanks:
Investigative stories can sometimes be written as features, but they don't always have to. While this is certainly not artful, it clearly gets the message across in a straightforward manner and accomplishes what it set out to do. Pulitzer liked it.
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