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Finance: What is a registration statement? 2 Views


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Description:

What is a registration statement? A registration statement is the set of documents that accompany a filing of securities with the SEC for sale in the public markets. There are various types of registration statements that bear different designations. For example, the S-1 statement pertains to shares being registered in an IPO. A Form 10 registration statement requires the filing company to regularly file 10-Q quarterly and 10-K annual financial reports as per the regulations for fully reporting companies.

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Transcript

00:00

finance a la shmoop what is a registration statement....Hi I'm a

00:08

registration statement okay there I said [Uncle Sam poster talking]

00:10

it that's a registration statement alright

00:12

what am I good for well if you want to go public that is raise money from Joe [Joe Sixpack and Josephine Sixpack appear]

00:17

Sixpack and his wife Josephine well then you have to jump through all kinds of

00:21

hoops the most important of which is that you have to file a prospectus with

00:25

the Securities Exchange Commission or SEC all right what's a prospectus[Prospectus with SEC badge]

00:30

it used to be an amateur spectus but the well then it took some continuing ed

00:34

classes owned expecting skills and it turned pro and took money all

00:38

right well a prospectus basically just outlines all of the information that the

00:42

SEC deems is key to the offering like trailing revenues and profits and growth

00:48

the units sold, any lawsuits outstanding against the company, distribution,

00:53

contracts with vendors patents who the management is debts owed and on and on [examples of what is outlined in a prospectus]

00:59

why the need for all this registration well because so many unsuspecting

01:04

investors who likely didn't watch this video well they got taken taken in the [Person picks up red phone]

01:09

past yeah farmers, not educated government came to their aid they

01:12

invested in some sleazy thing that wasn't run through the SEC and now

01:16

they're walking around in a barrel saying we'll uh shmoop for food yeah [Man walking in a barrel]

01:21

good luck you know the phrase a barrel of fun yeah this is not what it's

01:24

referring to [Man walking inside a barrel and a tiger appears]

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