What is the SEC S-1 form?

In this article, you will find information about SEC Form S-1, how it works, and what important information it includes for individual investors.

Definition and Examples of SEC Form S-1

SEC Form S-1 is a form that companies must complete and submit to the Securities and Exchange Commission (SEC). This form provides critical information about the company and its securities. Companies must complete this form before they can issue publicly traded securities.

How Does SEC Form S-1 Work?

SEC Form S-1 includes two sections. The first section is known as the “prospectus,” which is the main part of the form. It includes information such as the description and number of securities being offered. It also includes a description of the business and some information about its financial performance. The prospectus is a public document, meaning that anyone can view it on the EDGAR database.

What’s Included in SEC Form S-1?

SEC Form S-1 for a company – or its prospectus – must include more than twenty items, including:

• Summary information, risk factors, and earnings-to-fixed charge ratio.
• Use of proceeds.
• Determination of the offering price.
• Dilution.
• Sellers of the securities.
• Distribution plan.
• Market price and financial performance of common stock.
• Financial statements.
• Additional financial information.
• Market risk disclosures.
• Executives and directors.
• Executive compensation.
• Ownership of securities by owners and management.

What Does This Mean for Individual Investors?

Individual investors can use SEC Form S-1 to learn more about companies they are considering investing in. This form, along with other filings the company submits to the Securities and Exchange Commission, can provide critical information such as the types of securities offered, the number of shares available to the public, the risks facing the company, and the audited financial statements.

Source: https://www.thebalancemoney.com/what-is-sec-form-s-1-5192404