Analyzing - Financial - Reports Manual

WALL STREET PREP FOUNDATIONAL COURSE

Reading & Anal Analyzing yzing Financial Reports WWW.WALLSTREETPREP.COM

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Reading & Analyzing Financial Reports Reports

Overview

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Reading & Analyzing Financial Reports > Overview

Introduction •

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The goal of this course is to expose students and finance professionals to the structure and typical contents of some of the most frequently used financial filing filings. s. In the United States, public companies must submit quarterly and annual filings with the Securities and Exchan Exchange ge Commission, which in tu turn rn makes these filings av available ailable to the public. In addition, the SEC also requires that companies file disclosures any time there is a merge merger, r, a sale of securities (including the IPO), a shareholder vote, buying and selling of shares by management manag ement and insiders, or anythi anything ng else that is considered a material event.

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Understanding how to navigate navigate financial reports is an important part of effectiv effectivee financial analysis,, along with a foundation in accounting, financial statement analysis, and corporate analysis finance. Understanding what is contained in these filings (as well as what isn’t contained in these filings) is what enables finance professionals to apply financial analysis concepts onto real companies. Without financial reports, it would be virtually impossible for inv investors estors to analyze compan company y performance.

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Reading & Analyzing Financial Reports > Overview

Introduction “All investors, investors, whether large institutions or private individuals, should have acc access ess to certain basic facts about an investment prior to buying it. To achieve this, the SEC requires pu public blic companies to disclose meaningful meaningfu l financial and other information to the public, which provides a common pool of knowledge for all investors to use to  judge for themselves if a company's company's securities are a good inv investment. estment. Only through the steady flow of timely, timely, comprehensive and accurate information can people make sound investment decisions.” Securities and Exchange Commission

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