Reports by issuer: Overview, definition, and example
What are reports by issuer?
Reports by issuer refer to the regular and detailed reports that a company (the issuer) is required to provide to its shareholders, investors, or regulatory authorities. These reports typically contain important financial and operational information about the company’s performance, strategy, and future outlook. In many cases, issuers of securities (such as stocks or bonds) are required to submit these reports to ensure transparency, compliance with legal requirements, and to keep stakeholders informed about the company's activities.
For example, if your business issues stock to investors, you may be required to submit quarterly financial reports (such as income statements, balance sheets, and cash flow statements) to regulatory authorities and shareholders.
Why are reports by issuer important?
Reports by issuer are important because they ensure transparency and accountability in business operations. They provide stakeholders, such as investors, regulators, and employees, with the information they need to make informed decisions about their investments, business dealings, or partnerships. By regularly providing these reports, the issuer demonstrates its commitment to openness and builds trust with stakeholders.
For SMBs, providing accurate and timely reports helps maintain credibility, ensures compliance with regulatory requirements, and allows the business to attract investment or secure financing.
Understanding reports by issuer through an example
Imagine your small business has issued shares of stock to investors. As part of the requirements for being a publicly listed company, your business must submit quarterly financial reports to the relevant securities authorities (such as the Securities and Exchange Commission, SEC) and to shareholders. These reports might include your company’s revenue, expenses, profits, and other financial metrics. Investors will use these reports to assess the company’s financial health and decide whether to hold, buy, or sell their shares.
In another example, a company that issues bonds may be required to submit annual reports to bondholders, detailing how the company is managing its debt and its plans for future repayments.
An example of reports by issuer in action
Here’s how reports by issuer might be referenced in a legal or business document:
“The issuer shall provide quarterly financial reports to its shareholders and file them with the appropriate regulatory authorities in accordance with applicable securities laws. These reports will include financial statements, management’s discussion and analysis, and any other information required by regulatory bodies.”
Conclusion
Reports by issuer are crucial for providing transparency and keeping stakeholders informed about the company's performance. For SMBs, submitting regular and accurate reports is essential for maintaining investor trust, ensuring legal compliance, and fostering business growth. By understanding the importance and requirements of reports by issuer, businesses can better manage their financial obligations and maintain good relationships with investors, regulators, and other stakeholders.
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.