Here’s something that might be quietly undermining your credibility as a thought influencer without you even realizing it. I admit, I sometimes get tripped myself.
I’m talking about those
seemingly harmless words: “this” and “that.” Not to bring back
painful memories of high school English, but most of you are in the financial
world. Knowing the difference between "this" and "that" is
vital for preventing dangerous ambiguity, clarifying complex financial
concepts, and for maintaining regulatory compliance. Even slight phrasing
errors can confuse investors and your clients, skew data interpretations, or
violate strict SEC "plain English" guidelines
Let’s take a look at some of the most common misuses of this and
that and simply fixes I try to use to keep them straight.
EXAMPLE 1.
Vague reference (the most common problem)
UNCLEAR:
"Revenue declined, operating costs rose, and the dividend was cut. This impacted
shareholder confidence."
PROBLEM: "This" floats around without a clear antecedent. “This” could
refer to revenue, operating costs or dividends.
BETTER:
"The combination of declining revenue, rising costs, and a dividend
cut impacted shareholder confidence."
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EXAMPLE 2. "This" used as a noun when it should modify
one
UNCLEAR: "The Fed raised
rates by 50 basis points. This
caused bond prices to fall."
BETTER:
"The Fed raised rates by 50
basis points. This
hike caused bond prices to fall."
EXPLANATION: Adding the noun
("hike") anchors "this" and makes the sentence easier to
scan quickly — important in financial prose where precision matters.
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EXAMPLE 3. Inconsistent distance signaling
UNLCEAR:
"Refer to the balance sheet above. That figure includes deferred tax
liabilities."
BETTER: "Refer to the balance sheet above. This figure includes deferred tax liabilities."
EXPLANATION:
"That" implies distance or separation; "this" implies the
thing is right at hand. Since the reader is being directed to the figure,
"this" is more accurate.
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EXAMPLE 4. Dropping
the word "That" incorrectly in subordinate clauses
UNLCEAR: "The
auditors confirmed that the reserves were understated."
BETTER: "The auditors confirmed that the reserves were understated."
Dropping
"that" is fine in casual speech, but in financial writing — where the
difference between confirming something happened vs. confirming a
specific claim can have legal weight — including "that" removes
ambiguity.
=======================================================================
EXAMPLE 5. Stacking "this" across paragraphs
UNCLEAR: "Margins compressed in Q3. This was due to input
costs. This
led management to revise guidance. This concerned analysts."
BETTER: "Margin compression from rising input costs prompted a
guidance revision and raised concerns among analysts."
EXPLANATION:
Each "this" points back to a different thing, forcing the reader to
mentally track a chain — a real problem in earnings reports or analyst notes.
=======================================================================
Conclusion
Whenever you use "this" or "that," ask yourself whether
a reader skimming at speed might misidentify what “this” or “that” refers to.
If so, either add a noun or rewrite the sentence. Spending a few extra minutes
to be crystal clear could save you hours of headaches down the road.
Do you have a good system for
keeping “this” and “that” straight? I love to hear more.
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