Table of Contents
- What Is Electronic Data Gathering, Analysis, and Retrieval (EDGAR)?
- Key Takeaways
- Understanding EDGAR
- Fast Fact
- Using the EDGAR System
- Advantages and Disadvantages of EDGAR
- Documents That Can Be Accessed From EDGAR
- Tip
- Other Key Documents
- How Far Back Does the EDGAR Database Go?
- How Did Hackers Access EDGAR?
- What Is EDGAR Filer Management?
- How Do You Find a Proxy Document in the EDGAR Database?
- What Is the Canadian Version of EDGAR?
- The Bottom Line
What Is Electronic Data Gathering, Analysis, and Retrieval (EDGAR)?
Let me explain EDGAR to you directly: it's the Electronic Data Gathering, Analysis, and Retrieval system, created by the Securities and Exchange Commission to boost the efficiency and accessibility of corporate filings. All publicly traded companies use this system to submit their required documents to the SEC. These documents are time-sensitive, and EDGAR has significantly cut down the time it takes for them to become publicly available.
Key Takeaways
Here's what you need to know: EDGAR is an online database of public filings maintained by the Securities and Exchange Commission. Under the Securities Act of 1933, public companies must disclose certain information to the public. Beyond equity details, you can use EDGAR to search filings for mutual funds, variable insurance products, or other securities. It launched in 1992, but electronic filings became mandatory in 1995. Today, you can find annual or quarterly reports for public companies dating back to 1995 or even 1994.
Understanding EDGAR
Under the Securities Act of 1933, public companies have to publish their financial data every three months. Back in the days of paper, this information was theoretically available to all investors, but it was hard to get your hands on it. The SEC started developing an electronic system in the early 1980s, with the first pilot in 1984. They launched the operational EDGAR in 1992, though it was voluntary then. From 1993, the commission phased in mandatory electronic filing.
Documents filed through EDGAR include annual and quarterly statements, institutional investor holdings, and various other forms. These contain critical information for investors and analysts. Some companies might be exempt if they're below certain thresholds.
Fast Fact
Remember, the Securities Act of 1933 mandates disclosure of financial data by public companies, and EDGAR makes this more accessible to everyday investors like you.
Using the EDGAR System
EDGAR offers a searchable database with over twenty years of electronic filings. You search it like any online tool, using a company or individual's name. Narrow results by date, executive office location, or file type.
Besides company data, you can research mutual funds, variable insurance products, or confidential treatment orders—these restrict access to otherwise required data.
Advantages and Disadvantages of EDGAR
One downside is that EDGAR filings are stripped down and tough to read compared to shareholder annual reports. All the info is there, but it's in one massive text file, making details hard to spot. That said, the structure is consistent across companies. For instance, if you're checking for accounting method changes, look in Part II, Item 9 of the 10-K.
With widespread internet access, you'll often find these reports on the company's own website, which might offer a smoother experience than sifting through EDGAR's clutter of similar company names.
Pros and Cons of EDGAR
- Pros: Provides a single repository for public filings. Allows easy access to 20+ years of corporate financial data, as well as mutual funds and variable investment products.
- Cons: Search function can be clumsy, and cluttered with similar-sounding companies. It may be easier to find reports on the webpage of the reporting company.
Documents That Can Be Accessed From EDGAR
You can access quarterly and annual corporate reports and financial statements via EDGAR. Annual Reports (Form 10-K) cover company history, audited financials, product and service descriptions, and reviews of operations and markets. Quarterly Reports (Form 10-Q) include unaudited financials and operations info from the past three months.
Tip
Documents filed before 1995 might not be on EDGAR, but you can request them through the Freedom of Information Act.
Other Key Documents
Investors often search for Registration Statements, needed before selling stock publicly; Form 8-K for events like bankruptcy; Forms 3 and 4 for ownership info; and Form 5 for unreported transactions from Form 4.
How Far Back Does the EDGAR Database Go?
EDGAR has documents from as far back as 1995 or 1994. For earlier paper filings, use the Freedom of Information Act.
How Did Hackers Access EDGAR?
In 2016, a Ukrainian hacker used stolen credentials to access unreleased filings, passing info to traders for insider trading before public release.
What Is EDGAR Filer Management?
EDGAR Filer Management is a portal for submitting filings to the SEC. It's more involved than searching; you need to submit a Form ID for authorization and access codes.
How Do You Find a Proxy Document in the EDGAR Database?
Search by company name in EDGAR, then refine by date or category. Proxy statements are under form 14K.
What Is the Canadian Version of EDGAR?
It's SEDAR, the System for Electronic Document Analysis and Retrieval, used by Canadian companies and maintained by the Canadian Securities Authority.
The Bottom Line
EDGAR gives you a straightforward way to access U.S. public company reports electronically. But its search can be awkward and not user-friendly. In today's internet era, you might find the same data just as easily on a company's site.
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