Research on Publicly-Traded Companies Key Terms

Learn about the types of research available for publicly traded companies
By Terri Deno All investors, whether individuals or businesses, should do research on publicly-traded companies before buying stock. Research on publicly-traded companies can come from a number of reliable resources, including the company itself, the federal government and a host of independent financial organizations. A research report on a publicly-traded company will take time to compile, but will give investors a clear picture of the stability or volatility of any publicly-traded company.

Publicly-traded company

A publicly-traded company offers shares of common stock to the public. Investors are able to purchase these shares; the buying and selling process is completed in organized exchanges. Publicly-traded companies are also regulated by the SEC.
Try:  Business Knowledge Source provides information on the benefits of a company becoming a publicly-traded company.

U.S. Securities and Exchange Commission (SEC)

The Securities and Exchange Commission is the federal regulatory agency for all securities and stock exchanges. Since a publicly-traded company provides shares on exchanges, the SEC regulates these companies.
Try:  Search for any publicly-traded company through the Securities and Exchange Commission website. The commission provides annual reports, IPOs and registration statements for these companies.

Annual report

An annual report is a statement prepared by a company to share information with customers, shareholders and the general public about the financial status of the company, future projects and information on management. A more detailed annual report is filed with the SEC.
Try:  IBM provides tips on how to read an annual report from a publicly-traded company.

Company ownership

Company ownership refers to the actual owners of a company. Many smaller companies are owned by larger companies, so this information is valuable when compiling research on a publicly-traded company.
Try:  NOLO provides information on the different types of company ownership structures.

Earning estimates

Earning estimates are the monthly or quarterly estimates of a company's profit. They are based on the average of the highest and lowest estimates from analysts.
Try:  The Street provides a primer on understanding earning estimates and how to interpret earnings reports.

Stock performance

Stock performance is the information provided by the daily trading price of a stock. Stock performance can be tracked over a specific period for research purposes.
Try:  The Stock Market Wizard provides information on how sales and earnings growth can affect stock performance.