The Corporate Annual Report

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The Corporate Annual Report

A company is required by law to provide its shareholders with information about its operations. An annual report satisfies this obligation.

Things To Know

  • For an investor, the annual report is critical for making investment decisions.

Why you should read it

The annual report is extremely useful to investors. It allows them to use their own judgment on how well the company is doing and to forecast its future earnings and dividends. The information in an annual report shows the company finances. For an investor, this information is critical for making investment decisions.

You can also read the chairman’s letter about the company’s future goals. One must exercise caution, though. Since a company representative writes the letter, it will be set in a positive tone. You may want to look at how accurate this letter has been in the past, to give you an idea of how much you can trust it. You can make your own predictions about the company’s future after reading the report.