If you’ve been investing for a while, you’re probably already familiar with the annual reports or Form 10-K and quarterly reports, Form 10-Q filings. However, occasionally, a company may file something called the Form 8-K.
What’s that and why should you take note?
What is an 8-K filing?
The Form 8-K which is also known as the current report, is a report that companies must file with the SEC regarding any major changes that could affect shareholders.
Often times, the duration between quarterly reports could be too long. Companies can notify shareholders of any current updates between quarterly reports through the 8-K filings.
What triggers an 8-K filing?
Any significant or major event that could affect shareholders should be announced via the Form 8-K filing. Companies are required to file the 8-K within four business days of the triggering event.
Some examples include:
- Bankruptcy
- Purchase or Disposal of Assets
- Creation of any Direct Financial Obligation
- Material Impairments
- Changes in Director Appointments
- Matters that require a vote from shareholders
- many more
How to find the 8-K filing of any company?
Once again, you can find all the Form 8-K of companies via SEC EDGAR database. Simply search for the company name or ticker to access all their public filings.
You can also find Form 8-Ks on the investors relations website of the bigger listed companies.
Why you should take note of any 8-K filings?
The Form 8-K filing includes the most current and significant information and announcement from a company. You should pay close attention to these, especially if it involves a decision that could affect your decision to remain vested in a company.
Knowing this information can also help you with your decision on whether to buy or sell a stock.
How to read an 8-K filing?
8-K filings are quite straightforward.
Main events will be listed as individual items, followed by a description and a link to relevant resources if available.
Frequently Asked Questions
What is the difference between an 8-K and a 10-K?
An 8-K filing is submitted whenever there are unscheduled but significant updates while a 10-K filing is a scheduled filing that publicly listed companies have to submit annually.
Is a Form 8-K filing bad?
No, not always.
Although companies must update on major issues like bankruptcy via a Form 8-K, it is just a way for companies to update shareholders of the latest events.
Some companies frequently used to share latest financials before an upcoming earnings call. Usually, a summary of the financial statements will be released pre-call which is useful in helping shareholders who are preparing to tune in to the live call.
Conclusion
Form 8-K filings are important for investors to monitor and pay attention to in order to make informed decisions on their investments. It is the duty of investors to remain vigilant with your investments, and the 8-K filings provide you with the most recent information you need.
