[Asia Economy Reporter Jang Hyowon] Recently, the number of individual investors investing not only in domestic stocks but also in overseas stocks, so-called ‘Seohak Gaemi,’ is increasing. After the KOSPI surpassed the 3000 mark and moved within a box range, investors seem to be turning their attention abroad. However, when it comes to actually investing in overseas stocks, it can be overwhelming to decide which companies to invest in. In that case, let's take a look at companies through the U.S. disclosure system (EDGAR).
The U.S. Securities and Exchange Commission (SEC) established an integrated disclosure system in 1970 and operates the EDGAR system. By accessing EDGAR, you can view ‘Company Filings,’ where you can search by entering the company name you want to find, the CIK (Central Index Key) number, or company code.
When you search for a company and enter, the company information appears at the top, and disclosure documents are listed either in recent order or categorized by type. The types are classified by symbols, and knowing these in advance can help you quickly find the information you need.
First, ‘10-K’ refers to the audited annual business report. Since this document is submitted to the SEC, it is more extensive and detailed than the annual report companies release each year. This report is disclosed within 90 days after the end of the fiscal year.
‘10-Q’ is the unaudited quarterly report. Although the quarterly report contains basic information about the company’s business status, it does not include as much detail as the 10-K. ‘8-K’ is a current report that discloses information about irregular events or issues such as corporate presentations.
‘3, 4, 5’ are insider trading reports, disclosing stock transactions by major shareholders or executives. Form 3 is the initial report filed when an executive first holds stock, and Form 4 is the report filed when there is a change in stock holdings.
‘S-1’ is the registration statement for issuing stocks. It is similar to a securities registration statement and includes prospectuses, making it a useful resource.
There are also forms like ‘SC 13D,’ ‘SC 13G,’ ‘PREM14A,’ and ‘DEFM14A.’ Items with ‘SC’ refer to disclosure reports about shareholders holding more than 5% of shares. Disclosures with ‘M14A’ relate to mergers and acquisitions (M&A).
Meanwhile, to start trading overseas stocks, you need to open an account with a domestic securities firm and then apply for overseas stock trading.
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