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. Proxy

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

    This is the annual report to shareholders. It is the principal ...
  3. 10-K Wrap

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

    1. An annual publication that public corporations must provide ...
  5. Annual General Meeting - AGM

    A mandatory, public yearly gathering of a publicly traded company's ...
  6. 10-K

    A comprehensive summary report of a company's performance 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. Markets

    SEC Filings: Forms You Need To Know

    The forms companies are required to file provide a clear view of their histories and progress.
  5. 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.
  6. ETFs & Mutual Funds

    Proxy Voting Gives Fund Shareholders A Say

    You have the right to take part in important company decisions - even if you cannot attend the meetings.
  7. Investing

    How To Efficiently Read An Annual Report

    Annual reports are clearly prepared without any intent to deceive or mislead investors. Still, investors should read them with a dose of skepticism.
  8. Investing

    Popular Resources for Equity Research and Analysis: Chapter 2: The SEC Website

    Second to the company investor relations sites is the direct SEC website at www.sec.gov. Investors can learn quite a bit about the securities industry from the SEC. The forms page, which details ...
  9. Investing

    How to Attend Berkshire Hathaway's Annual Meeting (BRK.A, BRK.B)

    An overview of what is required to go to the Berkshire Hathaway Annual General Meeting.
  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 first day of the first quarter?

    The first day of companies' fiscal years varies based on industry cycles. The timing is especially important because annual ... 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. What is the difference between a quarter and a year in finance?

    Examine the difference between a fiscal quarter and a fiscal year. Learn why investors examine both quarterly and annual ... Read Answer >>
  5. When must a company announce earnings?

    The Securities & Exchange Commission (SEC) requires companies to file earnings reports no later than 45 days after the end ... Read Answer >>
  6. What are some characteristics of ordinary shares?

    Read about some of the primary characteristics of ordinary shares, also known as common shares, including voting rights and ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center