Question

Any company in the U.S. that plans to issue stocks or bonds is required by the Securities and Exchange Commission to provide its balance sheet and income statement to the public. Why is this requirement in place? What kind of information that would be useful to potential investors can be found in these financial statements?

Answer 1

*ANSWER ::

-> In U.S. Company that plans to issue stocks Or bonds is required by the Securities and Exchange Commission to provide its balance sheet and income statement to the public.It Helps People to Examine Companies Overall Situation. Investing Money Is Risky Task So It Is Require To Know The Financial Situation And Market Position Of The Company And It Is Shows By The Financial And income Statement.

-> Share holder Is Real Owner Of the Company so Before Investing Money They Have To Examine The Balance Sheet Which Provide The Information About Companies Assets, Liabilities And Share So It Is Very Important Information That Helps The Share Holder To Trust The Company If Sufficient Assets Company Have So Investor Is Stress Free To Invest Their Money Risk Is Lower. And Liability Shows The Debts Of The Company Which Is Useful Information For Share Holder.

-> Share Holder Also Examine The Income Statement Which Provide Shareholder The Information About The Income And Expenses Of The Company And Also It Shows The Profitability Of The Company.

-> So We Assume That To Lower The Investment Risk Investor Have To Examine The Balance Sheet And Income Statement Of The Company Which Provide Useful Information About Company.