Why must the stock information be provided to us?

Question

Why must the stock information be provided to us?

Answer 1

Another word stock traded company is a public company. Its like the definition.

Secondly if it not provided then they can say " We are doing great, trust us" and then take your money and run. ( as a customer or an investor.)

Answer 2

I have to assume you mean things like the prospectus for new issues of securities.  

Back in 1933 the government decided that people were getting hosed on their stock purchases because they were not being provided with enough information prior to making purchases (pretty true actually).  To fix this some new laws were introduced (which there is no way I will get into now) that helped to protect investors.  Hence we have things like prospectuses for stock.

Mutual funds provide these so that you know what you are getting into with the fund when you give them your money.

Answer 3

and its fair, all traders can only trade based on public information if you know what i mean. the same information

thats why its illegal to do insider trading, you are trading on information not yet released,

since everyone is trading on the same information, the stock price is fairly correct..

just felt i would add that since no one mentioned

Answer 4

so you can decide if you want to incest or not.

Answer 5

maybe your avatar and my avatar should date??

idk

Answer 6

It is the law that all public companies or companies to be listed as public must disclose certain information.

Securities Act of 1933

http://www.sec.gov/about/laws.shtml

Securities Act of 1934

http://www.sec.gov/about/laws.shtml#sece...

Investment Company Act of 1940 (mutual fund disclosures)

http://www.sec.gov/about/laws.shtml#invc...

Answer 7

If it is a publicly traded company the stock information must be provided. Nobody is going to buy a stock without information about the company.

Answer 8

wouldn't you like to know about something you might own?

Answer 9

because if it werent then noone would no what the stock is thanks please rate me im new

Answer 10

Legally, all registered companies (registered with Companies House in the UK for example) have to provide annual accounts in order to maintain there company status. There are a number of different types of company but those that are public, whose stock can be bought and sold publically on a public exchange by law have to provide the public with essential information as to the health of the company. The reason that investors won't buy shares if the company doesn't give credible information does not answer the question why companies need to do this. But I guess, in democratic, free market countries, governments, impressed upon by its people have changed legislation so that companies have to give out the necessary information for investors to use in order to trade. Personally I wouldn't buy a single share if I didn't have access to the finer details of a company's health and status. Interesting question.

Answer 11

Because without a stocks statements, a Investor will know little about a company.  Its an investors right to know those things.  

Charts, Statements, P/E, and EPS...  I'v never bought a stock without looking at these things first