Form 10-K: Overview, definition, and example
What is Form 10-K?
Form 10-K is a comprehensive annual report that publicly traded companies in the United States must file with the Securities and Exchange Commission (SEC). It provides a detailed overview of the company’s financial performance, operations, and risks for the preceding fiscal year. The form includes key financial statements, management’s analysis, disclosures about executive compensation, and information about legal proceedings, among other details.
Why is Form 10-K important?
Form 10-K is important because it offers transparency to investors, analysts, and regulators by providing a thorough and standardized overview of a company’s financial health and business operations. It is one of the most important documents for investors, as it includes not only financial statements but also management’s insights into future risks and opportunities. This form helps ensure that companies are meeting their disclosure obligations, fostering informed investment decisions and maintaining market integrity.
Understanding Form 10-K through an example
If a company has had a strong year financially, it will report its revenue, profits, and other financial metrics in the 10-K. The report will also highlight any significant risks, such as exposure to economic downturns, lawsuits, or new competition. For investors, reviewing the 10-K helps them assess the company’s long-term viability and make decisions about buying or selling stocks.
Example of how a reference to Form 10-K may appear in a contract
Here’s how a reference to Form 10-K may appear in an agreement:
"The Company shall provide the Investor with a copy of its most recent Form 10-K, filed with the Securities and Exchange Commission, within 15 days after the filing date."
Conclusion
Form 10-K is a key disclosure document that provides investors with essential information about a company’s financial performance, risks, and operations. It is a required filing for public companies, and its detailed nature makes it an indispensable resource for those looking to evaluate a company's financial health. Understanding how to read and interpret a 10-K is crucial for making informed investment and business decisions.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.