Form 10-Q

Form 10-Q Overview

The Form 10-Q is submitted by public companies quarterly as required by the U.S. Securities and Exchange Commission. The 10-Q contains financial statements that have not been audited , which provide insight into a company’s financial health throughout the course of the year. Firms are required to disclose the financial statements, management guidance and significant milestones achieved by the corporation. These events can include new product releases and stock events. The 10-Q provides a forward looking assessment of a company’s potential growth. This assists investors in estimating the potential growth of a company over the near future. The 10-Q has gain more popularity over the recent years as a result of ENRON and MCI falsifying there quarterly reports in order to retain investors. It is critical that quarterly statements are done properly, as they can result in restatements. A restatement generally requires halting the trading of a security. This lack of transparency into a companies financial picture will often increase volatility as traders begin to speculate widely how the revised reports will affect the price of the stock. The 10-Q is widely known as a companies, quarterly earnings statement which drives the market. The 10-Q is due 35 days after the each of the first three fiscal quarters. The 10-Q is not required after the fourth fiscal quarter, because it is covered in the 10-K. A company’s 10-Q filing can be found in the SEC’s EDGAR database. In addition to the company’s filing on the database, shareholders can request a copy of the 10-Q from the company directly and the company must provide a copy by law. Most companies provide the 10-Q report on their investors section of their website. The primary purpose of the 10-Q report is to provide investors with information about the company to assist in the process of determining whether a stock should be purposed. The 10-Q is the foundation for fundamental analysis.

Contents of Form 10-Q

The form 10-Q contains a wealth of information of a company’s financial picture. The form also includes details of a company’s operations, subsidiaries, organizational structure, and legal proceedings. Many investors make the mistake of going directly to the numbers and not reading the details of a company’s 10-Q. This of course defeats the purpose of providing such level of detail to investors.

Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...
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