Beginning Investor Terms – 10k
Posted on | December 9, 2009 | No Comments
If you think that a 10k is a race that is about six miles long, then this post is for you. In investment terms a 10k is a Securities and Exchange Commission’s (SEC) required filing for publicly traded domestic companies.The gems within this filing include audited financial information, historical and structural information, descriptions of subsidiaries as well as risks and strategies for the future. There are often important nuggets that cannot be gleaned from just reading the financial statements. the 10k’s and 10Q’s are required reading for any company you are interested in investing in. At first they can see dry, and maybe a little dull. But ultimately, it is sort of like a treasure hunt, you are looking for something that others have overlooked, or misinterpreted whether good or bad. These distinctions can be the difference between a good trade and a poor one.
A listed company is supposed to file their 10k within 60 days of the end of their fiscal year, if they are over $700 million of public float and within 90 days if less than $75 million. If they do not it is often, but not always, a huge red flag that the company is hiding something. A 10k (Yearly) and its cousin the 10Q (Quarterly) are essential sources of information for any stock investor looking at domestically trade equities. You can do a search for companies online for free at EDGAR.
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