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 Report

    An annual report is a publication that public corporations must ...
  2. Annual General Meeting - AGM

    An annual general meeting is a mandatory annual assembly of a ...
  3. Annualize

    To annualize is to convert a short-term calculation or rate into ...
  4. 10-K Wrap

    A 10-K wrap is a summary report of a company's annual performance ...
  5. Analyst Meeting

    An annual meeting held by publicly traded corporations where ...
  6. Information Circular

    A document sent to shareholders outlining important matters to ...
Related Articles
  1. Investing

    Understanding The Top SEC filing forms

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

    SEC Filings: Forms You Need To Know

    The forms companies are required to file provide a clear view of their histories and progress.
  3. Investing

    How To Efficiently Read An Annual Report

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

    Proxy Voting Gives Fund Shareholders a Say

    You have the right to take part in important company decisions by proxy.
  5. Investing

    Speed-Read SEC Filings for Hot Stock Picks

    SEC filings can be a headache. Read out how to speed-read through your stock research.
  6. Investing

    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.
  7. Investing

    Data Mining For Investors

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

    Shareholders: Vote Your Proxy and Be Heard

    Voting shares, in person or via proxy ballot, is a right every shareholder should exercise. Here's why.
  9. Investing

    Using Public SEC Filings To Analyze Companies

    Reports from the Securities and Exchange Commission provide investors with an edge in determining the investment value of companies. Learn what to look for in these financial reports.
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. 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 >>
  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. 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 >>
Hot Definitions
  1. Return On Equity - ROE

    The profitability returned in direct relation to shareholders' investments is called the return on equity.
  2. Working Capital

    Working capital, also known as net working capital is a measure of a company's liquidity and operational efficiency.
  3. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  4. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  5. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  6. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
Trading Center