SEC Form 11-K

What Is SEC Form 11-K?

SEC Form 11-K is a Securities and Exchanges Commission (SEC) form that publicly traded companies are required to yearly file. The form includes information about stock purchases made by employees, as well as any savings plans or similar plans that own interests in any securities that are registered under the Securities Act of 1933, such as employee stock ownership plans (ESOPs).

Understanding SEC Form 11-K

Form 11-K is also alluded to as the Annual Report of Employee Stock Purchase, Savings, and Similar Plans Pursuant to Section 15(d) of the Securities Exchange Act of 1934. The Securities Exchange Act of 1934 authorized the creation of the Securities and Exchange Commission (SEC), the regulatory arm of the Security and Exchange Act (SEA), and set forward requirements for the markets and financial professionals to safeguard the investing public.

Publicly Traded Companies

As a result of this act, publicly traded companies are required to disclose significant information about their business and corporate structure to the SEC. The information required in SEC filings is made accessible to ensure that investors — including company employees — approach convenient, accurate data in regards to the issuing company's financials and its business model, and can use that information to determine how financially and structurally sound a company is. The information in Form 11-K also helps potential investors foresee a company's future performance and choose if they will invest in that company.

Form 11-K requires companies to give examined financial statements to the past two fiscal years, an evaluated statement of income, and changes in plan value for every one of the latest three fiscal years of the plan.

Form 11-K and Employers

At the point when employers offer characterized commitment plans to their employees — for instance, a business' 401(k) employee savings plan with a company stock fund part — they act as the plan sponsor. They give their employees the option to contribute their own funds to the plan knowing that their money will be used to procure securities. Companies are required to register all shares accessible through their characterized commitment plans on Form S-8, as well as filing a Form 11-K annually.

The requirements for this annual reporting are itemized in the Securities and Exchange Act of 1934. The company creates a special annual report, Form 11-K, and submits it to the Securities and Exchange Commission toward the end of its fiscal financial year alongside Form 10-K. Form 10-K provides a summary of a company's performance for the year. (It is more definite than the report that is sent to shareholders annually.)

Form 11-K is not required to be filed for stock option plans, restricted stock plans, or other long-term incentive plans.

Reporting Deadlines

The reporting for Form 11-K must be filed in no less than 90 days after the end of the fiscal year of the plan, with the exception of plans that are subject to the Employee Retirement Income Security Act of 1974 (ERISA), which have a filing cutoff time of 180 days after the plan's fiscal year-end. Filers can request a 15 calendar day extension.

Highlights

• This form is required to be filed annually, even on the off chance that the issuer of the securities offered to employees pursuant to the plan also files annual reports pursuant to Section 13(a) or 15(d) of the Exchange Act.
• SEC Form 11-K records all insider or employee activity including the buying and selling of a company's stock.
• The form is used to report employee transactions as well as transactions including employee stock purchase savings or retirement plans.