Any company that is traded on the stock exchange has to fill out reports for the Securities and Exchange Commission. If it is a publically traded company and you ask them for a prospectus they should furnish it would fail. These laws were inacted to protect the shareholders/investors. These laws were enacted shortly after the Great Depression. As you can see from the link below it states that they were enacted to:
require that investors receive financial and other significant information concerning securities being offered for public sale; and
prohibit deceit, misrepresentations, and other fraud in the sale of securities.
The reason for this is because during the Great Depression part of what happened that caused Wall Street to crash was that investors had put their money in these companies and these companies were not telling the truth about their financial condition. Many companies failed and the people that had money invested in these companies and lost large sums of money, some of them jumped off buildings and all kinds of other things.
Now we have laws that say financial statements have to be reviewed/audited by accountants and accountants now have to follow guidelines found in Generally Accepted Accounting Principles and FASB, the Financial Accounting Standards Board.
A phone company should not be able to refuse to send you a report but if they did you can probably look it up on the second link I gave you it says Edgar so you would go to SEC.COM and look for EDGAR.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment