Understanding Common Investments: Investing in a Public Company
Information about public companies whose stock is traded on the New York Stock Exchange, NASDAQ, other exchanges and venues, or over-the-counter is contained in the documents these public companies file with the Securities and Exchange Commission (SEC). Among the items reported are:
- Financial statements
- Description of business
- Location and character of principal properties
- Legal proceedings
- Stock options and compensation of top executives
- Proposed offerings of securities
- Number of shareholders
- Number of employees
Issuers of registered securities must file annual and other periodic reports that provide a public file of current information about the company. These reports include the 10-K, which provides a comprehensive overview of the company. The 10-K is filed within 90 days after the close of the company's fiscal year.
The 10-Q is a quarterly financial report filed by most companies, which although unaudited, provides a continuing view of a company's financial position during the year. The 10-Q must be filed 45 days after the close of the fiscal year quarter. To obtain copies of these reports, contact the SEC.