Corporate SEC Filings

Lesson

Corporate SEC filings provide crucial financial information to investors and regulators and are essential for understanding a company's financial health and performance.

Practice Question #1

Which of the following is an annual report filed with the SEC that provides a comprehensive summary of a company's financial performance?

A) 10-K

B) 10-Q

C) 8-K

D) S-1

Select an option above to see an explanation here.

A) 10-K is the annual report filed with the SEC. B) 10-Q is the quarterly report filed with the SEC. C) 8-K is a report filed to announce significant events. D) S-1 is the registration statement for new securities offerings.

Terms

10-K:: The annual report filed with the SEC provides a comprehensive summary of a company's financial performance.
10-Q:: Quarterly report filed with the SEC, providing an update on a company's financial performance between annual reports.
8-K:: Report filed with the SEC to announce major events that shareholders should be aware of, such as mergers, acquisitions, or executive changes.
S-1:: Registration statement filed with the SEC for new securities offerings, providing detailed information about the company and the securities offered.
Form 4:: Statement filed with the SEC by company insiders disclosing changes in their ownership of company securities.
Form 13F:: Quarterly report filed by institutional investment managers, disclosing their equity holdings.
Form 144:: Notice filed with the SEC by company insiders indicating their intent to sell restricted securities.
Form 3:: Initial statement of beneficial ownership, filed by company insiders when acquiring company securities.
Form 5:: Annual statement of changes in beneficial ownership, filed by company insiders.
Proxy statement:: Document filed with the SEC, providing information about matters to be voted on at a company's annual meeting, including executive compensation and board of director elections.

Practice Question #2

What is the purpose of Form 4?

A) To disclose changes in company insiders' ownership of securities.

B) To provide information about matters to be voted on at a company's annual meeting.

C) To announce major events that shareholders should be aware of.

D) To disclose institutional investment managers' equity holdings.

Select an option above to see an explanation here.

A) Form 4 is filed by company insiders to disclose changes in their ownership of company securities. B) Proxy statements provide information about matters to be voted on at a company's annual meeting. C) 8-K reports announce major events that shareholders should be aware of. D) Form 13F discloses institutional investment managers' equity holdings.

Historical Example

In the early 2000s, a major energy company filed fraudulent financial reports with the SEC, overstating its revenues and hiding its debts. This eventually led to the company's bankruptcy and the enactment of stricter financial reporting regulations.

Practice Question #3

Which of the following forms is filed by company insiders when they first acquire company securities?

A) Form 3

B) Form 4

C) Form 5

D) Form 144

Select an option above to see an explanation here.

A) Form 3 is the initial statement of beneficial ownership filed by company insiders when acquiring company securities. B) Form 4 discloses changes in company insiders' ownership of securities. C) Form 5 is the annual statement of changes in beneficial ownership filed by company insiders. D) Form 144 indicates company insiders' intent to sell restricted securities.

Rhyme

Required forms for insider trading disclosure. Form 3, we see, when ownership begins, When insiders join, that's where it pins. Form 4's in store, for trades and buys, Within two days, to avoid the lies. Form 5, alive, catches what's missed, Filed each year, to complete the list.