Company FAQ

Why do you need to know this ~%`&?)*> stuff?

Public or Private? | US or Foreign? | Subsidiary or Parent? door.gif (2678 bytes)

Public ownership:
If the company is publicly owned (that is, listed and traded on a stock exchange), then you usually have access to lots of information! Public US companies must file their tax returns (usually known as 10-K reports), and many other documents, with the SEC, or Securities and Exchange Commission. These are completely public information sources. For public companies, you have access to the following sources of information:

SEC documents (10-K's, annual reports, etc.)

news reports in business magazines and newspapers

reference books

financial analysts' reports

company press releases

company's web site

Private ownership:
If the company is privately owned, then your research sources are often quite limited. Just as private citizens do not have to publish their tax returns, neither do private companies. Therefore, you are limited primarily to:

news reports in business magazines and newspapers

company press releases

reference books (usually larger private companies only)

company's web site globe.gif (2054 bytes)

Foreign companies:
If the company is based outside of the US, the research limitations imposed by the question of public vs. private ownership still apply. In addition, you may have to work with the following limitations:

limited coverage in US business publications

coverage in foreign language publications only

public company annual reports may be in foreign languages and less accessible

public disclosure requirements for public companies in other countries are sometimes not as stringent as in the US, so the information you do find in an annual report may not be as extensive as what you can expect to find in a US 10-K or annual report.

US companies:
If your company is based in the US, then the research sources you may consult will depend on whether or not the company is public or private, and a parent or a subsidiary company.

Subsidiary companies, and company divisions:
If the company is a subsidiary, or the unit of interest is only a division of a company, this usually limits the sources of information you may consult to:

news reports in local business magazines and newspapers

Parent companies that are public are not required to disclose separate financial information about their subsidiaries or divisions. In other words, they do not have to file separate tax returns. It is roughly the equivalent of a married couple filing a single tax return as "married, filing jointly"! As a general guideline only, if the subsidiary or division represents a major line of business for the parent, there will be more information about it in annual reports and 10-K's.

Parent companies:
If the company is a parent, or headquarters location, your research restrictions depend on whether or not the company is public or private, and US or foreign based.

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Public or Private? / US or Foreign? | Parent or Subsidiary? | Why Care?