Search for glossary terms (regular expression allowed)
Begin with Contains Exact termSounds like
Term Definition
10-K

Definition: The form on which a publicly-held company reports its business performance and financial condition following the end of every year. The performance is reported for both the last quarter (ie: three months) of the year and for the entire year. The form is then sent to the Securities & Exchange Commission (SEC), the government agency which requires it and which keeps it on line for investors to examine.

Example: Visiting http://www.sec.gov/edgar.shtml allows any investor to look up any publicly-held company's filings, including its 10-K reports.

Investeach explains: The most important resource that an investor can have is information. Thankfully, the government requires publicly-held companies to complete form 10-Q each quarter so that we never go longer than three months without knowing how a company is doing. The 10-K provides information for the last quarter and the entire year so investors don't have to combine 10-Qs themselves. The 10-K is also audited, meaning that an independent firm formally examines the company's activities and makes sure that its business activities have been properly accounted for. 

The deadline for filing the 10-K is 60 days for companies with over $700 million of public float (ie, stock in ordinary investors' hands). For companies with public float between $75 and $700 million, the deadline is 75 days. For companies with less than $75 million of public float, it is 90 days. 

Why look up a company's 10-K? Simply because it contains a wealth of information about the company, from financial statements to management's discussion of the business. It even contains a list of risks, in the Risk Factors section, that could derail the company. The reason the company is so honest about what could bring it down is that this makes it immune from being sued by investors who lose money because one or more of the possibilities it warned about actually happened.

Finally, companies may select a fiscal year (ie, 12 consecutive months that it will add up and report about) that is different than the calendar year. A good way to think about this is to consider the grade school year. It usually begins in late summer, not January!

Riddle me this:

1. Which government agency requires that companies periodically report to investors how they are doing?
2. What two time periods does the 10-K report about?
3. Is the financial information on the 10-K audited or unaudited?
4. What important information is contained in the 10-K?

10-Q

Definition: The form on which a publicly-held company reports its business performance and financial condition following the end of every quarter (ie: three month period). The form is then sent to the Securities & Exchange Commission (SEC), the government agency which requires it and which keeps it on line for investors to examine.

Example: Visiting http://www.sec.gov/edgar.shtml allows any investor to look up any publicly-held company's filings, including its 10-Q reports.

Investeach explains: The most important resource that an investor can have is information. Thankfully, the government requires publicly-held companies to complete form 10-Q each quarter so that we never go longer than three months without knowing how a company is doing.

The deadline for filing the 10-Q for most companies is 40 days after the end of the quarter. Notice above that Google filed its report just inside this deadline. The 10-Q is not audited (ie: the financial figures have not been examined by an independent firm).

Companies only have to file three form 10-Qs per year even though there are four quarters in a year! The reason is that at the end of the year, companies are required to complete a 10-K, the form on which it reports the last quarter's performance as well as its performance for the whole year (ie, the last four quarters).

Riddle me this:

1. Which government agency requires that companies periodically report to investors how they are doing?
2. How many months does a 10-Q encompass?
3. Is the financial information on the 10-Q audited or unaudited?
4. Why do companies only have to file three 10-Qs per year and not four?

8-K

Definition: The form on which a publicly-held company reports important events that occurred in its business. The form is then sent to the Securities & Exchange Commission (SEC), the government agency which requires it and which keeps it on line for investors to examine.

Example: On March 26, 2014, Google filed a form 8-K to report that it was creating another type of common stock, called Class C.

Investeach explains: The most important resource that an investor can have is information. Thankfully, the government requires publicly-held companies to complete form 10-Q each quarter so that we never go longer than three months without knowing how a company is doing. However, there may be information arising from events and activities happening with the company all during the year that is important for investors to know about. The 'catch all' for these events is the 8-K. As we saw above, buying out another company is a reason to file an 8-K. Other reasons include acquiring or disposing of significant assets, a top executive leaving the company, and closing up or selling off a part of the business.

Because it is important for investors to know what is happening with the company, the deadline for filing the 8-K for most events is four days. While this may sound like a tight deadline, consider that news of an important event may appear in the financial news within hours of it happening. In four days, a company's stock can move significantly. For this reason, investors don't rely on the 8-Ks to keep up with what's happening!

Riddle me this:

1. Which government agency requires that companies periodically report to investors how they are doing?
2. When are companies required to file an 8-K?
3. What types of events require the filing of an 8-K?

U.S. Indices

1 S&P 2,439.07
+0.77 (0.03%)    
2 DOW 21,409.55
+14.79 (0.07%)    
3 NASDAQ 6,247.15
-18.10 (-0.29%)    

Financial Literacy for All!

famvir 500 mg
buspar price
buy topiramate online