Welcome to the Learning Network!
The purpose of this network is to create a running database of information. It's essentially a big crowdsourced Q&A. That way people can find everything they need as this grows.
^Help it grow by asking a question!^
- What is a stock?
A stock or equity represents ownership of a business.
- What is the stock market?
The collection of all the publicly traded companies and the host of buyers and sellers.
- What is the significance of a company going from Private to public/ IPO-ing?
The significance is more transparency and therefore more scrutiny by public investors. It also typically means higher valuations because there is more liquidity (meaning the ability to buy and sell easily). Going public gives a company a lot of cash to grow the business and cover the costs. It also can be good as a marketing tool for validity when selling to bigger customers.
Here's a video: https://www.youtube.com/watch?v=9WCtgeN5eig
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- What is the point of reading the 10k?
As an investor the 10k is where all the info we need to know is. Financials, the business, customers, suppliers, how much management gets paid, debt, nearly everything. So we get all the info from these documents.
- Is the fourth quarter for every company in December, or do companies choose their own time frame for that?
Companies will choose their reporting times. So you have to find when each company is reporting separately. This is because it gives the analysts (the people whose job it is to write reports) enough time to do a good job. It would be impossible to cover if all companies reported on one day.