Files and Annual Reports

The annual financial report of a company is the biggest and most effective approach for prospective investors to understand its financial state.

 

The annual company report serves as marketing tool that is created to attract and convince investors.

 

Companies then tries to present themselves in best possible way without causing any violations to SEC regulations.

 

Coverage of Financial Reports

 

In most cases, a company will be filing both 10-K report and the annual report to Securities and Exchange Commission (SEC). The annual report is basically the more concise version which comes with:

  • Letter from CEO or Chairman
  • Gloss Pages
  • Illustrations and above everything else;
  • Overview of Financials

 

Investors are always taking and making the time to read 10-K filing. It’s done prior to making investments to public firms. The report all starts with detailed business description. Then, it is followed by the risk factors, summer of legal issues and numbers as well as financial notes.

 

10-K Filing: What makes it an Effective Report?

 

 

In most cases, vital components that 10-K filing does cover the business, risk factors, legal proceedings, selected financial data and management analysis and discussion of financial condition. These elements have to be disclosed if the company wants to better attract new investors.