Thursday, December 15, 2011

Why is financial information on publicly traded companys available free for anyone to see?

To people can see how they are really doing..and it is the law....|||To encourage a "level playing field" in investments; unless it is completely "fair", the stock market doesn't work efficiently...|||Because if the stock is traded to the public, they have a right to know.|||So anyone who invests in publicly traded investments has the same info available as anyone else does.


It is a way of preventing "insider trading."


as soon as info becomes available which may or may not have a bearing on the financial status of a publicly traded company, it must be made public. And this is usually done by means of a press release to the media.|||Financial information on publicly traded company's are made available because of SEC rules and regulations, the reason is to protect the investor. Which are Institutional, Mutual, and Individual. When you buy stock in a Company its like giving that Company a loan (of Your money) to grow and expand their business. You by giving that Company Your money expect a return, much like having Your money in a banks saving account. By making the financial information public, you can see how the company is performing, such as, are quarterly revenues growing or declining. Its one indicator for and investor to decide whether to buy or sell that Company's stock.

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