DEFINITION of 'SEC Form N-CSR'

SEC Form N-CSR is a form that a registered management investment company completes and files with the Securities and Exchange Commission (SEC), following the transmission of annual and semiannual reports to stockholders. The company must file this form within 10 days of sending such reports to shareholders.

BREAKING DOWN 'SEC Form N-CSR'

Section 30 of the Investment Company Act of 1940 and Sections 13 and 15(d) of the Securities Exchange Act of 1934 cover the filing requirements for Form N-CSR. (These are the sections that require investment companies and trusts to file semiannual and annual reports with the SEC and shareholders.)

Companies must file Form N-CSR electronically unless it files for a hardship exemption. Companies must also sign forms and include additional information as needed, including (but not limited to):

  • A copy of the report to stockholders
  • A copy of the firm's code of ethics
  • The name of the financial expert of the firm's audit committee
  • The disclosure of principal accountant fees and services for the previous two fiscal years
  • The disclosure of listed registrants or reason for exemption from the audit committee
  • The firm's security holdings
  • The disclosure of proxy voting policies

According to the SEC, this form is meant as a guide in preparing a larger report (not simply a blank form to be filled in). In addition, the form’s general instructions should not be filed with the report.

SEC Form N-CSR and Annual and Semi-Annual Reports

Annual and semiannual reports associated with SEC Form N-CSR include the 10-K and 10-Q, respectively. The 10-K is a comprehensive summary of a company's performance that typically contains more detail than a regular annual report. The 10-K has a particular focus on financial performance and risks (what an investor would want to know prior to buying or selling shares of stock in the corporation or investing in the firm’s corporate bonds).

The 10-K includes five distinct sections:

  • Business provides an overview of the company’s main operations, including its products and services and how it generates revenues.
  • Risk Factors outlines any and all risks that the company faces or could face in the future, typically listed in order of importance.
  • Selected Financial Data details specific financial information about the company over the last five years.
  • Management’s Discussion and Analysis of Financial Condition and Results of Operations, known as MD&A, gives the company an opportunity to explain its business results from the previous fiscal year.
  • Financial Statements and Supplementary Data includes the company’s audited financial statements, including the income statement, balance sheets and statement of cash flows. This also includes a letter from the company’s independent auditor, certifying the scope of their review.
  • In contrast, while a 10-Q includes much of the same information as a 10-K, this report is filed quarterly.

There are two parts to a 10-Q filing. The first part contains relevant financial information for the period, including condensed financial statements, MD&A, disclosures regarding market risk, and internal controls. The second part contains any legal proceedings, unregistered sales of equity securities, the use of proceeds from the sale of unregistered sales of equity, and defaults upon senior securities. The company also details any other information, including the use of exhibits, in this section.

RELATED TERMS
  1. SEC Form 497

    SEC Form 497 is a document that investment companies must use ...
  2. SEC Form F-4

    SEC Form F-4 is a filing that the Securities and Exchange Commission ...
  3. SEC Form T-4

    SEC Form T-4 is an application for exemption from certain sections ...
  4. SEC Form S-8

    SEC Form S-8 is a registration form for securities offered as ...
  5. SEC Form N-SAR

    SEC Form N-SAR is a U.S. Securities and Exchange (SEC) filing ...
  6. SEC Form 10-QT

    SEC form 10-QT is used when there is a presentation of "transitional ...
Related Articles
  1. 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.
  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. Investing

    Data Mining For Investors

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

    Why Investors Should Look at the Proxy Statement

    The proxy statement is probably the most overlooked form that is filed with the SEC, find out why investors should promptly look at a proxy statement here.
  5. Financial Advisor

    How To Get A Job At The SEC

    Want to make a good living taking on those renegade trading rascals on Wall Street? Here are some tips to help you get in the door at the SEC.
  6. Financial Advisor

    What Triggers an SEC Audit for Financial Advisors?

    Advisors looking to avoid an SEC audit should pay heed to this list of what may catch the regulator's attention.
  7. Managing Wealth

    How & Where to File Form 1040 (And Which Version)

    All taxpayers need to know three things when filing a 1040: which form to use, how to file and where to file. After reading this, you'll know all three.
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. How often do mutual funds report their holdings?

    Learn how mutual funds are required by the Securities and Exchange Commission to disclose their portfolio holdings on a quarterly ... Read Answer >>
  3. 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 >>
  4. When does Q4 start and finish?

    Learn about different financial years used by various companies. Explore when the fourth quarter begins on October 1st and ... Read Answer >>
  5. 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 >>
Trading Center