Question

What type of firms publish financial statements and why?

Answer 1

Publicly listed companies publish financial statements such as the income statement, balance sheet, and cash flow statement.

It is a requirement from the Securities Exchange Commission (SEC) for the publicly listed companies to publish quarterly financial statements.

One of the objectives of publishing financial statements is that the investors need to know the financial status of the company they own and can make informed decision about staying invested or sell the shares of the company. The financial statements are also useful for the general public to decide on investing in the company.

Financial analysts get the key numbers from the financial statements to write a detailed report about the company.

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