Shareholder Letter

DEFINITION of 'Shareholder Letter'

A shareholder letter is a letter written by a firm's top executives to its shareholders to provide a broad overview of the firm's operations throughout the year. The letter generally covers the firm's basic financial results, its current position in the market, and some of its future plans. The shareholder letter is generally written once per year and is included in the beginning of the firm's annual report.

BREAKING DOWN 'Shareholder Letter'

The shareholder letter can be a good first stop towards getting a broad overview of a firm that you are analyzing for investment. However, it is important to understand that the shareholder letter, along with many other parts of the annual report, is normally written in a way to put the company's operations in the best possible light. Investors will want to take the information in the shareholder letter with a grain of salt and be sure to delve more deeply into the firm's financial results and perform independent research on the company and its industry before drawing conclusions.

RELATED TERMS
  1. Confirmed Letter Of Credit

    A second guarantee, in addition to a letter of credit, that commits ...
  2. Sight Letter Of Credit

    A letter of credit that is payable once it is presented along ...
  3. Engagement Letter

    A written agreement to perform services in exchange for compensation. ...
  4. Interpretive Letter

    A letter issued by banking regulators that interprets the banking ...
  5. Letter Security

    A security that is not registered with the SEC, and therefore ...
  6. Transferable Letter Of Credit

    A letter of credit that permits the beneficiary of the letter ...
Related Articles
  1. Professionals

    7 Cover Letter Blunders

    It's not just your resume that matters. Find out which cover letter mistakes can keep you from landing a job.
  2. Personal Finance

    Financial Analyst Cover Letters That Get You Hired

    Crafting a strong cover letter for a job can increase your chances of standing out from the crowd and landing an interview. Some techniques that help.
  3. Personal Finance

    The Complete Guide To Job Searching: Cover Letters

    You have found a job that sounds ideal. You might have the exact skills that the employer is looking for, but unless you can broadcast your abilities, the employer may never know you are the ...
  4. Retirement

    Letter Of Instruction - Don't Leave Life Without It

    This simple document can take the guesswork and headache out of settling your estate.
  5. Professionals

    7 Cover Letter Blunders

    It's not just your resume that matters. Find out which cover letter mistakes can keep you from landing a job.
  6. Professionals

    The Bottom Line

    It's not just your resume that matters. Find out which cover letter mistakes can keep you from landing a job.
  7. Investing

    Letter of Credit

    A letter of credit is a document from a bank promising to pay the holder a certain amount if the holder fulfills certain obligations. Sellers in commercial transactions often require buyers to ...
  8. Professionals

    Incorrect Company Name

    It's not just your resume that matters. Find out which cover letter mistakes can keep you from landing a job.
  9. Professionals

    7 Cover Letter Blunders

    Your resume might be stellar, but if your cover letter is a mess, that resume is likely to go straight into the trash unread.
  10. Professionals

    Redundancy

    It's not just your resume that matters. Find out which cover letter mistakes can keep you from landing a job.
RELATED FAQS
  1. When is it necessary to get a letter of credit?

    Capitalize on assets and negate risks by using a letter of credit. Letters of credit are often requested for buying, selling ... Read Answer >>
  2. What are the different types of letters of credit?

    Learn more about the different types of letters of credit that are used to facilitate exchanges between parties that might ... Read Answer >>
  3. When do I need a letter of credit?

    Learn more about the function of a letter of credit for both the buyer and the seller, and get some examples showing when ... Read Answer >>
  4. When are you legally required to get a letter of credit?

    Learn how exporters or importers who deal in international trade use letters of credit to ensure that transactions are safe, ... Read Answer >>
  5. Can entities other than banks issue letters of credit?

    Obtaining a letter of credit from a non-bank is legally acceptable according to the ICC, but companies tend to prefer to ... Read Answer >>
  6. What content does a letter intent have to have?

    Review some of the standard language that ought to be included in a letter of intent between two parties in a business transaction. Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center