Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Overview
Understand SEC 10-Ks, 10-Qs, 8-Ks, S4s, 13D Decipher CEO pay packages by looking at proxy statements or Form 990s. Learn from SEC filings about company strategies, markets, competition risks and legal liabilities. Feed ratios, KPIs, analyst comment into coverage; spot and enterprise. Awareness of the political economy around financial reporting.
Balance Sheet Assets = Liabilities + Equity Equity = Assets - Liabilities The T balances Maximizing shareholder equity
Income Statement Revenues Expenses = Income Income = Revenue Expenses Income = Profit (Loss)
Accounting
GAAP - Generally Accepted Accounting Principles Private Sector Standard Setting Bodies authorized by the SEC FASB Financial Accounting Standards Board, Norwalk, Conn. (US GAAP) IASB International Accounting Standards Board, London, UK. (IFRS, 120 countries)
Brief History Lesson Why this boring dry financial stuff matters Understanding the big picture The publics legal rights to information
Legal Framework
Crash of 1929, Congress holds hearings Securities Act of 1933 - creates SEC Securities Exchange Act of 1934 regulates stock markets, protects investors CFR Title 17 - Stock issuing companies are required to register with the SEC and file periodic public reports
All Lawyered Up
SEC Rule 10b-5 prohibits material misstatements and fraud 1988 Supreme Court allows shareholder classaction lawsuits, fraud on the market theory 1995 Private Securities Litigation Reform Act raises bar for filing shareholder suits Stoneridge Investment Partners LLC vs. Scientific-Atlanta, 2008 Sup Ct.
Business Reporting
Use company financial statements in your reporting Ask better questions, probe the right subjects, establish credibility Always read the statements first, press release second. Watch the spin.
Proxy Statement
SEC Form 14-A, Notice of Annual Meeting How much CEO and senior mgmt are paid Any side deals between management and the company Who the board members are Questions shareholders will vote on