What does the SEC require public companies to disclose?
Table of Contents
- 1 What does the SEC require public companies to disclose?
- 2 What disclosures are required by the SEC?
- 3 Do public companies have to disclose revenue?
- 4 What is the SEC form that a public company would file to disclose a current development with respect to a material contingency?
- 5 What information need to be disclosed by the company?
What does the SEC require public companies to disclose?
Companies file this report with the SEC to announce major or extraordinary events that shareholders should know about, including entry into material agreements; mergers and acquisitions; change in control; changes in auditors; the issuance of unregistered securities; amendments in company articles or bylaws; company …
What disclosures are required by the SEC?
SEC regulations require that annual reports to stockholders contain certified financial statements and other specific items. The certified financial statement must include a two-year audited balance sheet and a three-year audited statement of income and cash flows.
Is an 8k a press release?
Form 8-K: A Legal Requirement for “Material” Events In the most general terms, Form 8-K is an SEC disclosure vehicle used to provide the public with information deemed necessary to make an informed investment decision about a public company.
Why is there a need to disclose relevant information of a public company?
They can shield information from public knowledge and determine for themselves who needs to know specific types of information. Disclosure laws are designed to protect investors through the disclosure of business and financial information that could be considered relevant to making an investment decision.
Do public companies have to disclose revenue?
When a company goes public, it is required to follow the strict rules laid out by the Securities and Exchange Commission (SEC), the government body which oversees capital markets and protects investors. One of the many rules requires companies to file earnings reports that detail how a company has been performing.
What is the SEC form that a public company would file to disclose a current development with respect to a material contingency?
A. 1. Form 8-K shall be used for current reports under Section 13 or 15(d) of the Securities Exchange Act of 1934, filed pursuant to Rule 13a-11 or Rule 15d-11 and for reports of nonpublic information required to be disclosed by Regulation FD (17 CFR 243.100 and 243.101).
What information is required to be disclosed to investors?
The basic information package that publicly owned companies must disclose includes audited financial statements, a summary of selected financial data, and management’s description of the company’s business and financial condition.
What triggers an 8k?
item is triggered when the company enters into an agreement enforceable against the company, whether or not subject to conditions, under which the equity securities are to be sold. If there is no such agreement, the company should file the Form 8-K within four business days after the closing of the transaction.