Annual report to stockholders

As sexy as it sounds, this is the report distributed to stockholders at the annual meeting. It details the company’s financial condition and includes a description of the company’s operations, financial statements and MD&A. SEC Rule 14a-3(b) dictates the legally required content of the report.

 

The annual report lets stockholders know how a company is doing in detailed terms. It includes an opening letter from the CEO, financial data, operations results, market segment info, new product plans, subsidiary activities, and research and development activities for the future.

Of course, the annual report is not optional. Companies have to send annual reports to their shareholders after their annual meeting.

 

The front of the report is often colorful and filled with impressive charts and graphs showing off the company’s success. When you get to the back of the report, things start to get a little more boring as you dive into the list of the company’s activities over the past year. It can be a bit of a snoozefest, but it’s important for keeping everyone on the same page.

The annual report was actually not a requirement until the stock market crash of 1929. Thanks a lot, guys.

 

Example:

We are going to need a lot more coffee if we’re going to have this annual report to stockholders ready in time for the annual meeting next week.

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