COMPANY INFORMATION

1
COMPANY INFORMATION

• Financial information

2
PRIVATE VS. PUBLIC COMPANIES

• PRIVATE
• closely held companies
• stocks not available to general public and not
  traded on stock exchanges
• generally, not required by law to disclose
  financial information
• PUBLIC
• stocks available on the open market
• stocks traded on stock exchanges
• required by law to disclose certain financial
  information

3
FINANCIAL STATEMENTS

• Statement of Financial Position (Balance Sheet)
• an overview of companys value
• Income Statement
• records the flow of money in and out the company
• Statement of Stockholders Equity
• shows the change in companys capital structure
• Statement of Cash Flow
• shows how the cash was generated

4
PUBLIC FILINGS (disclosure statements)

• Annual report to stockholders (ARS)
• 10-K Report
• Proxy Statement

5
Reasons and the legal basis for disclosure

• Market crash 1929
• Securities Act of 1933
• Securities and Exchanges Act of 1934
• U.S. Securities and Exchange Commission

6
Annual Report to Stockholders (ARS)

• the letter from the chairman of the board
• independent auditors report
• financial statements
• balance sheet
• income statement
• statement of changes in fin. position
• comparison across the years
• discussion and analysis

7
10-K Report

• filed with the Securities and Exchange Commission
• most exhaustive financial disclosure
• two sections
• financial information
• supporting data
• usually more detailed than ARS

8
Proxy Statement

• official notice to stockholders before the annual
  meeting
• information on ownership and management
• bios and salaries of officers and executives
• information on mergers

9
CREDIT REPORTS

• provide an analysis of companys payment record,
  financial status, and background information
• Dun Bradstreet Corp. leading supplier of
  credit information, controls 90 of market
• Experian(was TRW till 1996)
• emphasis on smaller companies, information on
  proprietorships

10
Regulated Companies

• involved in activities of major importance for
  public welfare (i.e. banking, public utilities,
  airlines)
• required to submit fin. and operating info. to
  government agencies even though they are not
  publicly traded

11
Where to find financial information about a
private company?

• commercial credit reporting agencie
• local publications
• directory comparisons
• indirect sources
• Wall Street research reports
• industry norms and comparisons

12
Where to find financial information about a
public company?

• from a company itself
• SEC reading room
• EDGAR
• SEC Disclosure
• Moodys Manuals
• Standard Poors Corporation Records

13
Moodys Manuals

• 8 parts with 15 hard-bound volumes
• grouped according the type of company
• examples
• industrial
• bank finances
• international....
• more than 15,000 companies

14
Standard Poors Corporation Records

• loose-leaf service
• 6 volumes
• faster updating than Moodys
• daily update in Daily News
• coverage of 9,000 companies