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
10-Q quarterly report
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