A friend of yours works at a large corporation and listens to the stock reports regularly. Your friend asks you, "I always hear about the SEC, but I don't really know what it does or what it regulates. Can you explain it to me?"
Explain to your friend the following:
- What are companies registered with the Securities & Exchange Commission (SEC) required to include with their financial reports?
- What are SEC financials required to adhere to?
- What additional information is required of SEC registrants that is not required of nonregistrants?
- After visiting the SEC's Web site (www.sec.gov) and reviewing a few financial statements submitted by an SEC registrant, list the types of information you found that are required of registrants by the SEC.
The following grading criteria will apply to this assignment:
What are companies registered with the Securities & Exchange Commission (SEC) required to include with their financial reports?
What are SEC financials required to adhere to be compliant?
What additional information is required of SEC registrants that is not required of nonregistrants?
After visiting the SEC's Web site and reviewing a few financial statements submitted by an SEC registrant, list the types of information you found that are required of registrants by the SEC.