Accounting

 Public companies are required to file documents (regulatory filings) with the appropriate securities regulator. This allows investors to make informed decisions with accurate information.

In Canada, SEDAR (System for Electronic Document Analysis and Retrieval) is used for electronically filing securities-related information with the provincial securities commissions. The database provides access to public company and mutual fund information in the public domain.

• news releases
• financial statements
• management discussions and analysis (MD&A)
• annual reports

For more information on the types of documents public companies must file in Canada, visit the TSX's Filing Guide.

In the United States, EDGAR (Electronic Data Gathering and Retrieval system) performs the same service as SEDAR.

• 8-K: Unscheduled document addressing specific events
• 10-Q: Document released quarterly with financial and management information
• 10-K: Document released annually with audited financial statements, information on company operations and MD&A

*It is important to be aware that in the United States an annual report to shareholders and a 10-K are two separate documents.

Financial ratios determine how a company is performing within an industry.

Industry ratios are standards or averages that similar businesses have in a particular industry. They provide useful benchmarking information for businesses.