Form 8-K

What it is

These reports are used to notify investors of events that are material to the operations, structure and or status of the business. The 8-K report has to be to be filed with the SEC, by the company within four days of any significant event. Significant events can range from bankruptcy, legal rulings and acquisitions to executive personnel changes.

How to Read a Form 8-K

The 8-K is structured in a format to disclose the event and items the company considers relevant to investors and considers to be material to the business operations. Financial disclosures are also includes in the exhibits should the company feel necessary.

Things to Look Out For

The 8-K reports are often accompanied by a public press release if the company feels it will have a material impact on share price, however, this is not always the case. Many times the disclosure may go unreported on the news wires and only uncovered from the official 8-K filing. This can result in a rapid unexplained price move until the newswires report the information. It is prudent to have a news feed scan for any 8-K filings for stocks you may have in a portfolio to get a jump on the information that is not disclosed with a public press release.