Definition§
A 10-K is a comprehensive annual report filed by publicly-traded companies with the U.S. Securities and Exchange Commission (SEC). This report provides a detailed overview of the company’s financial performance, including its history, organizational structure, financial statements, earnings per share, executive compensation, and relevant operational data.
10-K vs Annual Report Comparison§
| Feature | 10-K Report | Annual Report |
|---|---|---|
| Filing Requirement | Required by SEC | Not mandatory |
| Detail Level | Very detailed | Less detailed, often more visual |
| Financial Statements | Comprehensive and audited | Summarized |
| Frequency | Annually | Annually |
| Focus | Regulatory compliance and transparency | Marketing and promoting the company |
| Audience | Investors, analysts, regulatory agencies | General public and investors |
Examples and Related Terms§
- Form 10-Q: A quarterly report filing that provides ongoing financial transparency between annual filings of the 10-K.
- Earnings per Share (EPS): A key indicator of a company’s profitability, reported within the 10-K.
- Proxy Statement: Information document concerning matters to be discussed at shareholder meetings.
Diagram§
Here’s a simplified flowchart illustrating the components of a 10-K report using Hugo-compatible Mermaid format:
Humor and Wisdom§
- “Filing a 10-K might feel like preparing for a surprise pop quiz in high school: you never know when the SEC will pop in, and your knowledge could impact your investment grade!” 📚😁
- “Always remember, the 10-K is what your Disney movies did not prepare you for. No hidden treasures here, just substantial numbers!” 🏴☠️💰
Fun Facts§
- The term “10-K” comes from the heading of the form itself. It’s not something you’ll gather from your local coffee shop menu!
Historical Insights§
- The 10-K has its roots in the Securities Act of 1933, which aimed to restore investor confidence following the Great Depression.
Frequently Asked Questions§
1. Why is the 10-K important for investors?§
It’s like your investment’s annual check-up; it gives you an overview of a company’s health and allows investors to make informed decisions.
2. Where can I find a company’s 10-K report?§
Every publicly-traded company files its 10-K with the SEC, which can be accessed through the EDGAR database on the SEC website.
3. How does a 10-K differ from a prospectus?§
While a prospectus is generally prepared for a public offering and focuses on future events, the 10-K is a retrospective annual analysis of a company’s past performance.
Further Study§
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Books:
- “The Intelligent Investor” by Benjamin Graham - A classic investment book that delves into financial statements.
- “Financial Statement Analysis” by K. R. Subramanyam - Helps in understanding the importance of 10-K reports.
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Online Resources:
Test Your Knowledge: The 10-K Report Quiz§
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