If you form a partnership, you sign a partnership agreement. If you get married, you might sign a pre-nup. A shareholder agreement fills a similar role; it's the document outlining a shareholder's relationship with a company.
The document includes a list of the rights of shareholders, along with details about the company. It also outlines the number of shares issued, and provides information about the shareholders, including how much they own.
If you're the CEO of a company and have a fight with a major shareholder, and then see them a few minutes later poring over their shareholder agreement, you might be in trouble. Just like if you see your spouse intently reading the pre-nup, it, uh...could mean lawyers might be getting involved soon.
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Finance: What are a 10K and 10Q?57 Views
finance a la shmoop what are 10K and 10Q filings well as the pros say 10Q
very much yeah you know we had to go there sorry well they're just filings a [Girl filing her fingernails]
different kind of filings legal filings papers or data
well the 10K is the annual report and the 10Q is the quarterly report their
note the Q in there yeah very clever naming their people well we have no idea
why the K is there like shouldn't it have been a 10A fling equals annual
anyway the filings contain the key elements that report to shareholders the [Man giving presentation to shareholders]
progress or lack thereof that the company has made in the period it's
reporting and these apply to public companies people privates don't
necessarily file... well the K the Q have to contain an updated income statement [Income statement, balance sheet and cash flow statement appear]
balance sheet and cash flow statement along with tons of notes on whatever
business metrics the company regularly reports the number of people made sick
by the lemonade the number a coal miner Barbies sold the number of Disney cruise
passengers infected with Legionnaires disease and so on and if you're the CEO [Person puking off the edge of a cruise ship]
or CFO of the company and you don't get your filings in on time well you'll be
doing a different kind of filing so yeah 10K, 10Q they're really important
don't ignore them...
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