Quarterly and Annual Financial Reporting

An IPO, or initial public offering, is the term for the first time that a private company sells shares of its stock to the public on a stock exchange. The event means that the company has transitioned from private to public ownership, which is why an IPO is often referred to as “going public.” It’s an opportunity for a company to raise significant capital—to help it fund new growth, for example, or pay off debt. And it allows private investors, like founders, angel investors, and family members, to cash out, often realizing gains on their investment.

An IPO is a big step for a company as it provides the company with access to raising a lot of money. This gives the company a greater ability to grow and expand. The increased transparency and share listing credibility can also be a factor in helping it obtain better terms when seeking borrowed funds as well.

When a company reaches a stage in its growth process where it believes it is mature enough for the rigors of SEC regulations along with the benefits and responsibilities to public shareholders, it will begin to advertise its interest in going public.

For support and additional information, explore our IPO Filing Solutions.

Periodic and interim reporting is the practice of providing company performance reports for periods shorter than a fiscal year, such as monthly, quarterly or semiannual reports. Known as periodic reports, interim reports or interim statements, these updates provide important company information between annual reporting periods.

To help protect investors and keep the public informed, regulations typically require public companies to submit company performance reports more than once a year. Although interim reports are not usually audited, companies must review them to ensure accuracy and distribute them in a timely manner.

Publicly held companies in the U.S. are usually subject to interim reporting requirements, including filing quarterly reports with Form 10-Q in addition to annual reports with Form 10-K. Quarterly reports usually include a balance sheet, income statement and statement of cash flows.

When public companies in the U.S. make important announcements, such as an executive leadership change or bankruptcy, they may also be required to file a current report with Form 8-K. Foreign companies operating in the U.S. may be required to report corporate news and press releases with Form 6-K. For support and additional information, explore our SEC reporting solutions.

The Securities and Exchange Commission (SEC) is the federal agency that oversees investment offerings and financial markets. It is responsible for regulating broker-dealers, investment advisors, exchanges, and public companies to ensure that investors have accurate and transparent information. It also regulates the sale of securities, including initial public offerings.

Congress created the SEC in 1934 in response to the Great Depression. As the first federal regulator of the securities markets, the SEC was tasked with regulating the bucket shops and unethical trading practices that had contributed to the stock market crash of 1929.

Securities offered in the U.S. must be registered with the SEC before being sold to investors. Financial services firms such as broker-dealers, advisory firms, asset managers, and their professional representatives must also register with the SEC to do business.