Saturday, August 9, 2014

Reading a Corporate Prospectus’ 10-K



Most investors never bother to read a corporate  prospectus. That’s one of the reasons why I suggest they don’t  buy individual stocks, but that they instead use low-cost mutual funds that invest in securities indexes.

In the event that they do read a prospectus--few are able to understand  what’s inside.   
                       
In that case, they ought to try to review the first part of the 10-K. The latter  provides a review of  what the company does or makes,and where. It also goes info a discussion of its customers and competitors.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

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