All publicly traded companies must file reports annually (hence the term “annual report”) with the Securities and Exchange Commission, as well as reports such as 10-Qs and 10-Ks. These are part of the SEC’s EDGAR database on its website. These reports must also be sent to all existing shareholders and to anyone else who requests one. Many companies are now posting their annual reports on their websites as well.

The SEC requires companies to include certain information in their annual reports, such as audited financial statements (income statement, balance sheet, and sometimes other financial statements). Most companies will also have a section where management discusses past progress and future plans. If you are about to invest in a particular company, you should read the annual report. In fact, you might want to obtain annual reports from the past several years and read them all. It may be useful, for example, to compare the financial statements for a number of years to see how the revenues and profits have grown (or not grown) over a period of time. It may also be useful to see if management’s vision and direction for the company have been accurate and successful.

Prospectus

A prospectus is a summary of the registration statement that a company must file with the SEC when issuing new securities. A company or mutual fund must make a prospectus available to any potential investors. Like an annual report, a prospectus must contain the financial statements for the company (although for a corporation issuing shares for the first time, financial statements may be somewhat limited). The ultimate goal of a prospectus is to provide full and complete disclosure about the company to any potential investors. Toward this end, the prospectus will include management’s discussion of any negative prospects, including potential legal or business risks for the company. If you plan to invest in a company’s new issue of securities, you should definitely obtain a copy of the prospectus and read it very carefully. The prospectus will tell you not only about the company’s financial performance but also about any business and market risks it may face in the future. Although you probably do not want to buy a new issue solely on the information in a prospectus, it is a good place to begin your research.

You might also want to check a copy of the Statement of Additional Information (SAI). The SAI is where you can find much of the detailed information that otherwise would be a part of mutual fund prospectuses. An SAI will include such information as an in-depth coverage of investment strategies, how management fees are calculated and spent, how performance numbers are determined, and fund directors. You can usually get an SAI by requesting one from the mutual fund, from the fund’s website, or on the SEC’s website.

Investment books

A stroll through any well-stocked bookstore will reveal literally hundreds of books on investing. There are books on investing in stocks, bonds, real estate, mutual funds, and every other conceivable investment product. There also are books on investing for major financial goals and other life situations. In addition to bookstores, your local public library may have a large section of books on money, investing, and the stock market. For anyone interested in doing his or her own research, it is well worth the time to spend an hour or two in a bookstore or library browsing through all of the investment books now available.

Newspapers

In addition to newspapers that cater strictly to business and investing (such as The Wall Street Journal and Investor’s Business Daily), almost all local newspapers carry stories about companies and businesses in their area. Many larger daily newspapers will also have separate business and financial sections with local and national business stories.

Reading your local newspaper can often be an excellent source of investment information. You may be able to discover smaller, fast-growing local companies before they become known to investors on Wall Street or in other parts of the country. Even if a local company mentioned in a news story is not yet publicly traded, it may be worthwhile to follow that company in case it ever does go public. You may be able to get in on the ground floor before other investors have discovered it. For this reason, many people cut out and save news and business stories on companies mentioned in their local newspaper.

The Wall Street Journal

The Wall Street Journal is a business newspaper that is published Monday through Saturday. Most serious investors, whether professional or amateur, read the Journal. In addition to general business-news stories, it has numerous articles on individual companies.

Every day, the Journal publishes an extensive section titled Money and Investing. This section always contains several articles on the financial markets and investing strategies. The Journal is available by subscription, either in print or a separate online edition, which includes access to the print version. Most newsstands carry the Journal, and many public libraries have a subscription to it.

Investor’s Business Daily

Investor’s Business Daily is another daily business newspaper. Like The Wall Street Journal, it is published five days a week. Unlike the Journal, however, Investor’s Business Dailytends to have fewer general news articles and business-news stories. For this reason, some investors find it a faster read than the Journal.

Financial magazines, journals, and newsletters

In addition to TheWall Street Journal and Investor’s Business Daily, hundreds of financial magazines, journals, and newsletters are published regularly. The three largest business magazines in circulation are Forbes, Fortune, and Business Week. Each has general business-news stories, articles on individual companies, columns on personal finance, and other types of news. In addition to these general business-news magazines, there are more specifically focused magazines such as Money or Personal Finance.

Journals such as Barron’s (a sister publication of The Wall Street Journal) are also available. Barron’s, for example, is published every Saturday morning. Other sources of investment research are published by individuals or by the large business-publishing companies. You can find newsletters that cover virtually every aspect of investing.

Radio and television

In addition to printed sources of financial information, many radio and TV programs are oriented toward the markets and investing. In addition, cable channels such as CNBC and Fox Business focus almost exclusively on business and financial programming; both also have related websites. Check your local directory for dates and times. Also, numerous radio stations carry business news during the course of the day. Almost every major city has all-news radio stations with continuous updates on financial markets and business news.

Web sites and blogs

Numerous web sites are devoted to business and investment information, the stock market, personal financial planning, tax planning, and other business interests. In addition to the websites of the sources mentioned above, some of the most comprehensive investing-related sites are MarketWatch (www.marketwatch.com), Yahoo! Finance (www.finance.yahoo.com), and MSN Money (www.moneycentral.msn.com). On most major financial sites, you can receive stock quotes during the course of the day (usually delayed 10 or 15 minutes). You can also access financial information about a company (e.g., earnings per share, price/earnings ratio, book value, charts of past price movements) and follow the daily ups and downs of the individual markets (e.g., New York Stock Exchange, American Stock Exchange, Nasdaq).

Many also include message boards that allow you to trade information and opinions with other investors. Many respected financial journalists also have blogs that allow them to offer their perspective on financial news.

Virtually every publicly traded company now has its own website. Most companies post their annual report on their website and provide you with various types of information about the company. Mutual fund prospectuses also are typically available online.

Brokerage firms and mutual fund companies

Brokerage firms can be another source of investment research information. Many midsize and large brokerage companies have staffs of investment analysts who follow the various publicly traded companies and industries in our economy. Those analysts are continually preparing new and updated research reports on these companies and industries. Other financial services companies contract with third-party providers to offer research, though it may only be available to its customers. Firms often offer to send a particular research report on a company or industry, using it as a prospecting tool to attract new clients.

Another good source of investment information is the mutual fund industry. Almost all of the large mutual fund companies produce numerous brochures and reports on various aspects of investing. The companies will usually make the information available to anyone who requests it.