SEC Form N-CSR

What Is SEC Form N-CSR?

SEC Form N-CSR is a document that registered investment management companies must file with the Securities and Exchange Commission (SEC), within 10 days of disseminating annual and semiannual reports to stockholders. Form N-CSR is a provision under Section 30 of the Investment Company Act of 1940 and Sections 13 and 15(d) of the Securities Exchange Act of 1934.

Understanding SEC Form N-CSR

Companies must file Form N-CSR electronically unless they file for a hardship exemption. The form commonly includes the following information:

• A copy of the report to stockholders
• A copy of the company's code of morals
• The name of the financial expert who manages the association's audit board
• The disclosure of principal accountant fees and services for the previous two fiscal years
• The disclosure of listed registrants or reason for exemption from the audit board of trustees
• The association's security holdings
• The disclosure of proxy voting arrangements

SEC Form N-CSR and Annual and Semi-Annual Reports

Annual and semiannual reports associated with SEC Form N-CSR include the 10-K and 10-Q, individually. The 10-K is a comprehensive summary of a company's performance that commonly contains more detail than a traditional annual report. The 10-K has a particular spotlight on financial performance and risks, which, in theory, enables investors to make more informed decisions about buying and selling a corporation's stocks and bonds.

Broken down further, the 10-K includes five distinct sections:

• An outline of the company's core operations, including its products and services offerings
• A breakdown of its revenue streams
• Risk Factors outlining any risks the company currently faces, or might actually face later on — commonly listed in order of importance
• Chosen Financial Data subtleties specific financial information about the company throughout recent years
• Management's Discussion and Analysis of Financial Condition and Results of Operations, known as MD&A, which bears the cost of the company an opportunity to explain its business data from the previous fiscal year
• Financial Statements and Supplementary Data, which includes the company's audited financial statements, for example, its income statement, balance sheets, and statement of cash flows (This likewise includes a letter from the company's independent auditor, certifying the scope of their survey.)

A 10-Q includes a large part of a similar information as a 10-K, yet this report is filed on a quarterly basis, not annually.

There are two parts to a 10-Q filing. The initial segment contains relevant financial information for the period, including condensed financial statements, MD&A, disclosures regarding market risk, and internal controls. The second part contains any legal proceedings, unregistered sales of equity securities, the utilization of proceeds from the sale of unregistered sales of equity, defaults upon senior securities, and any other miscellaneous relevant exhibits.

Features

• Form N-CSR must be filed within 10 days after a company disseminates annual and semiannual reports to stockholders.
• Form N-CSR is a provision under Section 30 of the Investment Company Act of 1940 and Sections 13 and 15(d) of the Securities Exchange Act of 1934.
• SEC Form N-CSR is a form that registered investment management companies must file with the Securities and Exchange Commission (SEC), containing a large group of company essentials.