What is EDGAR?
EDGAR—Electronic Data Gathering, Analysis, and Retrieval—is the electronic filing system created by the Securities and Exchange Commission (SEC) to increase the efficiency and accessibility of corporate filings. This system is utilized by all publicly traded companies when submitting required documents to the SEC. Due to its timely nature, EDGAR has significantly decreased the time for corporate documents to become publicly available.
Key Takeaways
- EDGAR is an online database of public filings maintained by the SEC.
- Under the Securities Act of 1933, public companies must disclose specific information to the public.
- Beyond equity data, EDGAR includes filings for mutual funds, variable insurance products, and other securities.
- Launched in 1992, electronic filings through EDGAR became mandatory in 1995.
- Users can retrieve annual or quarterly reports for public companies dating back as far as 1995 or 1994.
Understanding EDGAR
Under the Securities Act of 1933, public companies are required to publish their financial data every three months. Though accessible in theory, paper communication previously hampered access to such information.
The SEC’s development of an electronic reporting system started in the early 1980s, with the first pilot launched in 1984. The operational EDGAR system became available in 1992, transitioning from voluntary to mandatory electronic filing by 1993.
EDGAR encompasses a wide range of corporate documents, including annual and quarterly statements and institutional investor holdings. While some public companies could be exempt if they meet certain criteria, investors and analysts frequently use the critical data accessed through EDGAR.
Using the EDGAR System
EDGAR operates as a searchable database with over twenty years of electronic filings. Users can carry out searches like they would on any search engine, by using a company’s name or an individual’s name. Search results can be filtered by date, location of the executive offices, or the type of file needed.
Apart from company data, EDGAR also allows for the research of mutual funds, variable insurance products, or confidential treatment orders, which limit access to otherwise public information.
Advantages and Disadvantages of EDGAR
Pros:
- Central repository for public filings.
- Easy access to over 20 years of corporate financial data, including mutual funds and variable investment products.
Cons:
- Search functionality can be cumbersome, cluttered with similarly named companies.
- Reports might be easier to find on the company’s own website.
Documents That Can Be Accessed From EDGAR
EDGAR includes essential documents filed with the SEC like annual reports (Form 10-K), quarterly reports (Form 10-Q), and various other crucial filings. Annual Reports cover company history, audited financial statements, product and service descriptions, and annual operations and market reviews. Quarterly Reports offer unaudited financial statements and updates for the prior three months.
Furthermore, investors frequently consult other reports such as Registration Statements, Form 8-K (notable events like bankruptcy), Form 3 and 4 (ownership information), and Form 5 (reporting transactions not captured in Form 4).
How Far Back Does the EDGAR Database Go?
EDGAR hosts documents dating back to 1995 or 1994, although earlier paper filings can be requested through the Freedom of Information Act.
How Cybersecurity Impacts EDGAR
In 2016, a Ukrainian hacker accessed unreleased filings through stolen login credentials. This advanced information was then exploited by traders to gain an edge, highlighting the importance of stringent cybersecurity.
Understanding EDGAR Filer Management
EDGAR Filer Management is the gateway for companies and individuals aiming to submit electronic filings to the SEC. This intricate process requires submitting Form ID for authorization and securing access codes.
Finding Proxy Documents in EDGAR
To find proxy filings or other public submissions in EDGAR, search by company name, refined with additional criteria like filing date or category. Proxy statements can be located under Form 14K.
Canadian Counterpart of EDGAR
Canada utilizes the System for Electronic Document Analysis and Retrieval (SEDAR), managed by the Canadian Securities Authority (CSA), to mirror EDGAR’s functionality for Canadian public companies.
Conclusion: The Value of EDGAR
EDGAR stands as a valuable tool for accessing the electronic reports of any US public company. Despite its sometimes cumbersome search capabilities, the system remains a pivotal resource for investors. However, most of this data can be conveniently found on a company’s website in today’s digital age.
Related Terms: Securities and Exchange Commission, electronic filing, corporate filings, regulatory compliance, investment analysis.
References
- U.S. Securities and Exchange Commission. “Electronic Filing and the EDGAR System: A Regulatory Overview”.
- U.S. Securities and Exchange Commission. “EDGAR Company Filings”.
- U.S. Securities and Exchange Commission. “SEC Brings Charges in Edgar Hacking Case”.
- U.S. Securities and Exchange Commission. “EDGAR—Information for Filers”.
