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Textbook
Introduction
1. Common stock
1.1 Basic characteristics
1.2 Rights of common stockholders
1.2.1 Pro-rata share of dividends
1.2.2 Board of Directors
1.2.3 Inspection of books and records
1.2.4 Maintaining proportionate ownership
1.2.5 Stock splits
1.2.6 Assets upon liquidation
1.2.7 Transfer ownership
1.3 Trading
1.4 Suitability
1.5 Fundamental analysis
2. Preferred stock
3. Debt securities
4. Corporate debt
5. Municipal debt
6. US government debt
7. Investment companies
8. Alternative pooled investments
9. Options
10. Taxes
11. The primary market
12. The secondary market
13. Brokerage accounts
14. Retirement & education plans
15. Rules & ethics
Wrapping up
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1.2.3 Inspection of books and records
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1. Common stock
1.2. Rights of common stockholders

Inspection of books and records

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Inspecting a company’s books and records can sound complicated, but the basic idea is simple: investors want reliable information about how a company is performing. Stockholders pay attention to a company’s success because performance can affect profits.

Investors generally have the right to inspect the books and records of companies they’re invested in. For publicly traded companies, the Securities and Exchange Commission (SEC) also enforces reporting requirements by requiring certain documents to be created and distributed on a regular schedule.

10-K annual report

  • Audited financial report
  • Example: Tesla 10K filing

10-Q quarterly report

  • Unaudited financial report
  • Example: Microsoft 10Q filing

Financial reporting

  • Publicly traded companies must file ongoing financial disclosures

10-K annual report

  • Audited financial report

10-Q quarterly report

  • Unaudited financial report

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Inspection of books and records

Inspecting a company’s books and records can sound complicated, but the basic idea is simple: investors want reliable information about how a company is performing. Stockholders pay attention to a company’s success because performance can affect profits.

Investors generally have the right to inspect the books and records of companies they’re invested in. For publicly traded companies, the Securities and Exchange Commission (SEC) also enforces reporting requirements by requiring certain documents to be created and distributed on a regular schedule.

10-K annual report

  • Audited financial report
  • Example: Tesla 10K filing

10-Q quarterly report

  • Unaudited financial report
  • Example: Microsoft 10Q filing
Key points

Financial reporting

  • Publicly traded companies must file ongoing financial disclosures

10-K annual report

  • Audited financial report

10-Q quarterly report

  • Unaudited financial report