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This article is from the What Every Investor Should Know.
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Among the many sources of information on securities are:
- Corporations: Many public companies will send copies of their annual and quarterly reports free of charge to prospective investors who write or call. The annual report to shareholders contains a description of the company's business, its financial statements, and other updated and condensed financial and non-financial information. For new issues of stock, the investor should obtain and read a prospectus.
- SEC: The SEC has public reference rooms at its headquarters in Washington, D.C. and at its Northeast and Midwest Regional offices. Copies of the text of documents filed in these reference rooms may be obtained by visiting or writing the Public Reference Room (at a standard per page reproduction rate) or through private contractors (who charge for research and/or reproduction). Other sources on information filed with the SEC include public or law libraries, securities firms, financial service bureaus, computerized on-line services, and the companies themselves.
- Publications: There are many business and financial publications which provide news of current business conditions and profiles of individual companies or industries. The business section of your daily newspaper contains economic information and reports market prices, which will enable you to follow movements in the value of different securities. The public library can be a valuable resource to the investor, especially if it has a business librarian who can identify specific reference material.
- State Securities Commissions: In many cases,securities must be registered with the securities commission of each state in which they are to be sold. Your state securities administrator, usually located in the state capital, may keep such documents on file and accessible to the public.
- Other Sources: Additional sources of information include brokerage firms, stock exchanges, and various financial advisory services.
Most companies whose stock is traded over the counter or on a stock exchange must file "full disclosure" reports on a regular basis with the SEC. The annual report (Form 10-K) is the most comprehensive of these. It contains a narrative description and statistical information on the company's business, operations, properties, parents, and subsidiaries; its management, including their compensation and ownership of company securities; and significant legal proceedings which involve the company. Form 10-K also contains the audited financial statements of the company (including a balance sheet, an income statement, and a statement of cash flow) and provides management's discussion of business operations and prospects for the future. Quarterly financial information is also required to be filed on Form 10-Q, and current reports on Form 8-K may be required as well.
Anyone may obtain copies (at a modest copying charge) of any corporate report and most other documents filed with the Commission by visiting a public reference room or by writing to: Public Reference Room, Mail Stop 1-2, Securities and Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549-1002.
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