Evaluating a report [LO-1], [LO-5]

The Securities and Exchange Commission (SEC) requires every public company to file a comprehensive financial report known as "Form 10-K" every year. Companies usually combine this highly structured report with a more conversational "Letter to Shareholders" or other introductory mini report signed by the chairman of the board. The two combined reports known as the annual report. Visit the website of any publicity traded U.S. company and find its most recent annual report. Compare the style and format of the introductory report and the formal Form 10-K. How do the two reports meet the respective needs of company management and company's shareholders? If you were considering buying the company's stock, how would you use the two forms?