What is 8-k (Form 8k)?

One of the effective ways to be up to date with any company you intend to make an investment is to go to the SEC's EDGAR database and check all the forms they are supposed to fill under U.S. Securities and Exchange Commission(SEC). One such form is the 8-K.

An 8k is used to keep investors and shareholders informed on the major event going on in the company. 8k form is made mandatory by the U.S. SEC's to public companies and used to fill important but unusual corporate changes in the company that might be of interest to shareholders, investors or the SEC department. Information such as a change in the director of the company, bankruptcy, directors resignation, acquisition, change in a fiscal year and so on.

8k forms are usually referred to as the current report. This is because it is needed every four business working days compare to 10-k and other forms under the U.S.SEC regulations.

The major exception to filing the 8k form within the stipulated four days is Regulation Fair Disclosure (Reg FD) requirements.  This requirement might be due earlier than the four days needed to file the 8k form. In this kind of situation, the organization would decide if the information is material and then submit to the U.S. SEC department. The SEC department verifies the information and makes it available through the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) sites.

Generally, there are nine sections outline in the 8K form by the SEC department. Each section of the form could have up to eight subsections required to be filled by the company.

Information Contained In The 8k Form.

The major information contained in the 8K form is imminent company's bankruptcy and changes to material actual agreements. The form also contains information related to the company's financial situation like the completion of an acquisition, material impairments, disposal activities, changes in an entity's financial condition and so on.

SEC also made it compulsory for companies to file for delisting of stock, unregistered sales of securities, inability to meet the standard of listing, and modification of material to the right of shareholders.

The form is also used to report changes in the accounting firm used for certification, changes in corporate governance, amendments to the articles of bylaw or incorporation, an amendment to the code of conduct used for registration, changes related to asset-backed securities and so on