Sunday, February 28, 2016

The Essential Corporate 10-K Report

                     
Investors usually don’t bother to read a corporate prospectus. Among reasons why I suggest they don’t buy individual stocks, but that they use low-cost mutual funds that invest in securities indexes.
                       
It does make sense to individual securities investors to review the. corporate Notes in financial statements. The 10-K is essential in understanding the statements because its Notes describe the accounting methods used to prepare these financial statements. Any change in methodology from previous years can skew  figures. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

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