Researching Public Companies

Question 1

Annual Meeting

Answer 1

Once-a-year meetings where the chief executive officer reports on the year’s results to shareholders. At this meeting, shareholders vote to elect the board of directors and on other corporate business.

Question 2

Beneficial Owner

Answer 2

A beneficial owner holds stocks indirectly, for example, through a bank or broker-dealer. Beneficial owners are sometimes said to be holding shares in “street name.”

Question 3

Corporate Reports

Answer 3

Reports that public companies must file with the SEC.

Question 4

Form 10-K

Answer 4

You can find a wealth of information in the company’s annual report on Form 10-K. Among other things, the 10-K offers a detailed picture of a company’s business, the risks it faces, and the operating and financial results for the fiscal year. Company management also discusses its perspective on the business results and what is driving them.

Question 5

Form 8-K

Answer 5

Form 8-K provides investors with current information to enable them to make informed decisions. The types of information required to be disclosed on Form 8-K are generally considered to be “material.” That means that, in general, there is a substantial likelihood that a reasonable investor would consider the information important in making an investment decision.

Question 6

Public Company

Answer 6

A company that offers its securities through an offering and now has those securities traded on the open market.