Understanding 10-K, 10-Q, and 8-K Reports: What’s the Big Difference for Investors?

Under SEC requirements, publicly traded companies are required to disclose a wealth of information to the public. Knowing how to decipher these filings can help investors make informed decisions regarding whether to buy, sell or hold a company’s securities.

As the second in a series, this post provides a brief overview of several key corporate disclosures —10-K, 10-Q, and 8-K reports.

10-K Reports

Most public companies are required to file a 10-K report with the SEC on an annual basis. The report is generally different from the annual reports that corporations provide to shareholders, as federal securities laws dictate the order and type of information that must be included. However, some companies will provide their 10-K report in lieu of an annual report.

The 10-K is valuable to investors because it provides a comprehensive picture of the business’s state of affairs, from its most significant risks to its ongoing litigation. 10-K reports also include a number of important financial statements, such as audited balance sheets, income statements, and cash flow statements, which are key to assessing a company’s financial health.

Companies who make materially false or misleading statements, or omit material information that is necessary to render a report not misleading, can be prosecuted for violating federals securities laws. Investors can obtain a company’s Form 10-K filings in the SEC’s EDGAR database. Companies are also required to provide the report to all shareholders upon request.

10-Q Reports

Publicly traded companies are required to file 10-Q reports within 40 days of the end of each of the first three quarters of their fiscal year. The purpose is to update information included in prior SEC filings and provide a continuing view of the company’s financial position during the year. Unlike Form 10-K, companies may provide unaudited financial statements.

10-Q reports can similarly be found on the SEC’s EDGAR database.

8-K Reports

Publicly traded companies are required to file 8-K reports when material events occur that shareholders should know about, such as a bankruptcy, merger, or leadership change. In these circumstances, companies are not allowed to wait until their next 10-K or 10-Q report is due. Corporations must also file an 8-K Form when they announce quarterly results.

For additional information about SEC required filings, please see Schedule 13D and Form 13F Filings: What’s the Big Difference for Investors?

If you have any questions about SEC filing requirements or need assistance with compliance, please contact me, Dan Brecher, or the Scarinci Hollenbeck attorney with whom you work.