What is SEC EDGAR and how you can benefit as an investor with it?
On this occasion, the complicated ratios and the shredding of the ETFs will be left aside to understand a basic tool for the fundamentalist investor that operates in the North American markets.
Operating in the markets is an activity sensitive to time: the greater the speed of dissemination of the information required to operate, the better it will be for the investor and for the companies that will see their relevant information disseminated among many more people in increasingly shorter times.
The Internet is a necessary platform to be able to fulfill those objectives, especially if you are working with blockchain technology. Many companies or exchanges directly hire the so-called “wires” to real information highways so that their companies can send to the news media and online news agencies to meet the growing demand of investors who demand transparency and speed of information. This decision is voluntary and is based on the need of a company to be more exposed in the media than others as it is decided to choose a policy of dissemination via social networks (Facebook or Twitter) with the financial community or consumers of their products or services.
But for those public companies that are merely dedicated to complying with the law in the US. the U.S. Securities and Exchange Commission (aka the “SEC”) offers the public a large amount of information on its website at www.sec.gov. This site also includes the “EDGAR” data bank (http://www.sec.gov/edgar.shtml#.U3DmkYF5NA0) of informational documents that companies with listed shares must submit to the regulatory entity. EDGAR is a part of the SEC’s information system.
EDGAR stands for “Electronic Data Gathering Analysis and Retrieval System”, an online system dedicated to the search and processing of data in an electronic form. Before 2002, foreign companies voluntarily reported the information. As of that year it became obligatory for all companies and foreign governments to do so. EDGAR Online was a North American company dedicated to the financial information located in Norwalk Connecticut that was purchased by RR Donnelley in 2012. Previously, its information system had already become part of the SEC’s orbit for all those companies that issue shares in the US. UU
What does EDGAR offer?
It offers an automated collection in addition to the validation indexing and acceptance of that information sent by companies and other entities that are required by law to complete forms (fill in forms) within the US. The database is free and public free via the Internet (on the web or through the FTP information flow). The search for a company can be done by name or ticker.
Although most of the documents are now completed electronically with more than 3,000 filings per day, not all the information of companies obliged to disseminate their information that are publicly listed is available in EDGAR block chain. But most and most relevant yes: this is a list of the main forms that one can find.
Forms 3 (initial amount) 4 (change in quantity) and 5 (annual change summary list) provide the investor with information about who buys and sells the shares and at what price between the executives of the firm as well as buyers institutions with interests in the firm.
Forms 10-Q and 10-K provide the balance sheet (statement of financial position statement of income and cash flow) as well as information on recent activity of the company). Form 10-K are generally amendments to the 10-Q and are audited (the 10-Q is the unaudited quarterly balance sheet).
On the other hand, Form 8-K is used as an internal report in which non-public information falls within the Regulation Fair Disclosure (Reg FD) that needs to be disaggregated before the issuance of a 10-K or 10-Q. It may refer to information regarding a hostile bid acquisition / dissolution activity and / or bankruptcy or an advance balance sheet report.
Form S-1 is required by those companies that make an IPO or a subsequent public stock offering. It is an overview of the company, its business, competitive advantages, previous financial data and details of the offer. Form S-1 for new issuers is used for North American companies and Form F-6 for foreign issuers in the form of ADRs (American Depositary Receipts) or ADS (American Depositary Shares)
The Schedule 14A Form provides all shareholders with material including executive compensation before the annual meeting.
Thanks to EDGAR no retail investor is at a disadvantage compared to others on information to complete the research of a company and its situation. All the disaggregated prospectuses and balance sheets can be consulted there.
In recent times, EDGAR has gone from being a simple blockchain database to an electronic tool in real time and dynamic search with interactive capabilities using XBRL computer language.
At http://www.sec.gov/investor/pubs/edgarguide.htm#.U3C15sy9K0c investors will be able to find much more information of the spill in this note about how to investigate public or private equity companies through EDGAR .