Information for shareholder

The information the owners must have includes regular financial facts. Every year the company must produce an account of its finances (the phrasing in law is a little more complicated but that is what the rules amount to) and this must be sent to all registered shareholders. (See Chapter 7 for what the useful information is in those annual reports and accounts and how to extract it.) Shareholders must also have notice of important events affecting the business. That includes details of major acquisitions and disposals, demergers and reorganizations.

Source: Becket Michael (2014), How the Stock Market Works: A Beginner’s Guide to Investment, Kogan Page; Fifth edition.