Friday, August 18, 2006

Overview
Form 8-K a very broad form used to notify investors of any unscheduled material event that is important to shareholders or the SEC. This is one of the most common types of forms filed with the SEC.

Form Uses
Form 8k is used to notify investors of a current event. These events include:

  • Material agreements
  • Bankruptcies
  • Asset movement
  • Result of operations and financial condition
  • Financial obligations
  • Material impairments
  • Delisting or transfer exchange notices
  • Unregistered equity sales
  • Modifications to shareholder rights
  • Change in accountant
  • SEC investigations and internal reviews
  • Financial non-reliance notices
  • Changes in control of the company
  • Departure or appointment of company officers
  • Ammendments to company bylaws or other similar documents
  • Trading suspension
  • Change in credit
  • Change in company status
  • Other events
  • Financial exhibits
Investors should always read any 8-K filings that are made by companies in which they are invested. These reports are both material and relevent to the company, and often contain information that will affect the share price.

Reading the Form
Typically an 8-K filing will only have two major parts. They are:

  1. The name and description of the event - this contains all the information that the company feels is relevent to shareholders and the SEC. It is important to read this information over, as it has been deemed "material" by the company.
  2. Any exhibits that are relevent - these exhibits may include financial statements, press releases, data tables, or other information that is referenced in the description of the event.

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