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. SEC Form ARS

    This is the annual report to shareholders. It is the principal ...
  2. Shareholder

    Any person, company or other institution that owns at least one ...
  3. Proxy

    1. An agent legally authorized to act on behalf of another party. ...
  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. Annual General Meeting - AGM

    A mandatory, public yearly gathering of a publicly traded company's ...
Related Articles
  1. Investing

    The Annual Report Is a Public Company's Obligation

    The annual report is a yearly publication that public corporations provide to shareholders to describe the company’s operations and financial condition.
  2. Investing

    A Peek Into Shareholder Meetings

    Shareholder meetings can be glamorous, exciting or controversial, but not particularly revelational. Here's a quick look at what to expect.
  3. Managing Wealth

    Knowing Your Rights As A Shareholder

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

    How To Efficiently Read An Annual Report

    Learn how to read between the lines and decipher the actual condition of a company.
  5. Investing

    Who is a Shareholder?

    A shareholder is a person, company or other entity that owns at least one share of a company’s stock.
  6. Investing

    SEC Filings: Forms You Need To Know

    The forms companies are required to file provide a clear view of their histories and progress.
  7. 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.
  8. Managing Wealth

    An Introduction To Shareholder Activism

    The secret to being an activist shareholder is to ask the right questions.
  9. Investing

    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.
  10. Investing

    Data Mining For Investors

    Being an informed investor is extremely important, but where and how do you get the data for your research?
RELATED FAQS
  1. What are the differences between a 10-K report and a firm's own annual report?

    Understand the key differences between a corporation's own annual report and its 10-K report filed with the SEC and how investors ... Read Answer >>
  2. What can shareholders vote on?

    Understand the usual voting rights of common stock shareholders, along with the importance of shareholders exercising their ... Read Answer >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  6. What rights do all common shareholders have?

    Learn what rights all common shareholders have, and understand the remedies that can be taken if those rights are violated ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center