Annual

DEFINITION of 'Annual'

An annual is an event that occurs once a year. Annual events or reports may include taxes, shareholder meetings and corporate filings such as a 10-K. These types of announcements are in contrast to those reported quarterly, such as a 10-Q. Other significant events that occur on an annual basis include annual fees and annual compounding events.

BREAKING DOWN 'Annual'

The most crucial annual event for a company is a shareholders' meeting. These meetings are required by law for publicly traded firms. Investors usually receive an invitation that announces the date, agenda and scope of the meeting. Shareholders typically elect a board of directors at these annual gatherings. Shareholders also choose an accounting firm to review the company's bookkeeping practices.

Any shareholders who cannot attend in person usually vote by proxy, either through email or U.S. mail. Votes taken at a shareholders' meeting are only binding if a quorum of shareholders is physically present at the meeting. An administrative assistant usually records the minutes of the meeting so shareholders can review the business that occurred.

Taxes

Just like individuals, businesses and corporations file income tax returns once per year before the filing deadline in mid-April. The type of tax paid depends on the structure of the business. Corporations pay taxes based on income by making regular payments once per quarter, but any adjustments occur when the annual return goes to the IRS in April. Some corporations must pay excise taxes on fuel, transportation and manufacturing every year.

Annual Reports

Publicly traded companies must file annual reports with the U.S. Securities and Exchange Commission (SEC). These reports became mandatory after the stock market crash of 1929. Annual reports give investors a chance to research a corporation before deciding to buy stock. The SEC receives a company's annual report as part of Form 10-K. Filings and strategy sessions that occur once a year typically involve a level of forecasting, with a company identifying what it expects to earn or what it expects to do over the course of the next 12 months. The company may keep investors up to date with progress through quarterly reports.

Annual reports include several sections. Financial highlights delve into a company's revenue, income, sales, acquisitions and expenses. The report contains hard numbers, statistics, infographics and analysis that give shareholders and potential investors a guide for what happened over the past year and what to possibly expect in the coming year. Annual reports and shareholder meetings normally occur congruently and after the end of a company's fiscal year.

RELATED TERMS
  1. Annual General Meeting - AGM

    A mandatory, public yearly gathering of a publicly traded company's ...
  2. Proxy

    1. An agent legally authorized to act on behalf of another party. ...
  3. SEC Form ARS

    This is the annual report to shareholders. It is the principal ...
  4. 10-K Wrap

    A summary report of a company's annual performance that bundles ...
  5. Annual Report

    1. An annual publication that public corporations must provide ...
  6. SEC Form 10-KT

    A filing with the Securities and Exchange Commission (SEC) that ...
Related Articles
  1. Investing

    Knowing Your Rights As A Shareholder

    We delve into common stock owners' privileges and how to be vigilant in monitoring a company.
  2. Investing

    How To Efficiently Read An Annual Report

    Learn how to read between the lines and decipher the actual condition of a company.
  3. Markets

    Understanding The Top SEC filing forms

    It's easier than ever to keep track of your SEC filing status online.
  4. Investing

    Proxy Season 2016: Most Wonderful Time of the Year

    Each year, public companies hold shareholder meetings where individual and institutional investors vote on the future. Here is what to watch in 2016.
  5. Markets

    Speed Read SEC Filings For Hot Stock Picks

    SEC forms can be a real headache. Find out how to make your research more efficient - and more effective.
  6. Markets

    Data Mining For Investors

    Being an informed investor is extremely important, but where and how do you get the data for your research?
  7. Investing

    What is the Shareholder Equity Ratio?

    The shareholder equity ratio shows how much money shareholders will receive if a company has to liquidate its assets.
  8. Markets

    How Your Vote Can Change Corporate Policy

    Shareholders are getting a bigger say in how companies are run. Find out how you can be heard.
  9. Investing

    Fundamental Analysis: Introduction to Financial Statements

    By Ben McClureThe massive amount of numbers in a company's financial statements can be bewildering and intimidating to many investors. On the other hand, if you know how to analyze them, the ...
  10. Markets

    EDGAR: Investors' One-Stop-Shop For Company Filings

    You can learn a lot about any listed company through this system - if you know how to use it.
RELATED FAQS
  1. How do a corporation's shareholders influence its Board of Directors?

    Find out how shareholders can influence the activity of the members of the board of directors and even change official corporate ... Read Answer >>
  2. What is the investor rights movement?

    The investor rights movement, also called shareholder activism, refers to the efforts of shareholders of publicly traded ... Read Answer >>
  3. How can I access a company's earnings report?

    Find out how to access the quarterly and annual earnings reports for publicly traded companies, and even how to listen in ... Read Answer >>
  4. Who is responsible for protecting and managing shareholders' interests?

    The average shareholder, who is typically not involved in the day-to-day operations of the company, relies on several parties ... Read Answer >>
  5. What happens to the stock of a public company that goes bankrupt?

    Occasionally, publicly listed companies go bankrupt. The company's shareholders, depending on the type of stock they hold, ... Read Answer >>
  6. What does it signify about the state of a company if it has unusually high shareholders' ...

    Understand the meaning and calculation of shareholder equity and what a high level of shareholder equity signifies about ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center