Using SEC Filings: Researching Stocks with 10-Ks and 10-Qs
- Felix La Spina
- Jul 15
- 7 min read
Introduction: Why SEC Filings Are Every Investor’s Secret Weapon
If you want to invest like a pro, it’s not enough to read news headlines or analyst summaries. Real investing edge comes from primary sources, and for U.S.-listed companies, that means learning how to use the SEC’s treasure trove of filings.
Two of the most critical filings for investors are the 10-K (annual report) and the 10-Q (quarterly report). These reports give you the raw data: revenue, profit, risk factors, management discussion, and more. The SEC’s EDGAR database lets you access them all for free.
This guide will show you:
Why 10-Ks and 10-Qs matter for serious investors
What to look for in each report (step-by-step)
How to spot red flags and warning signs
How to use filings to get an edge over the average investor
Where to keep learning with StockEducation.com
1. What Are SEC Filings, and Why Do They Matter?
The Securities and Exchange Commission (SEC) is the main regulator of U.S. stock markets. All public companies must file regular, standardized reports, providing a clear, comparable look at their business.
Key filings for stock research:
10-K: The annual report – comprehensive, audited, and detailed.
10-Q: The quarterly update – less detailed than the 10-K but more frequent.
8-K: For major events (mergers, CEO changes, restatements).
Proxy statements (DEF 14A): For shareholder meetings, pay packages, and board elections.
Why they matter:Analyst reports and financial news are useful, but every meaningful insight comes from these filings. If you want to really know a business, always start with the raw filings, not someone else’s summary.
2. What Is a 10-K? Step-by-Step Guide for Beginners
The 10-K is the gold standard for company disclosure. Filed annually, it contains everything an investor needs to understand a business, warts and all.
Key sections in every 10-K:
Business Overview: What the company does, its markets, and competitors.
Risk Factors: All major risks that could hurt the company, legal, financial, industry, etc.
Selected Financial Data: Multi-year tables of revenue, profit, cash flow, and balance sheet items.
Management Discussion & Analysis (MD&A): Where executives explain results, trends, and future outlook in plain language.
Financial Statements: The “numbers”, income statement, balance sheet, and cash flow are audited by outside accountants.
Notes to Financials: Explains accounting methods, key judgments, and any unusual items.
Executive Compensation: What top management earned last year, and how their pay is structured.
Legal Proceedings: Any lawsuits or regulatory actions pending.
Exhibits: Contracts, subsidiary lists, and more.
Pro tip: Always read the latest 10-K, but also look at prior years for context and trends.
3. How to Read a 10-K Like a Pro (With Examples)
a. Start With the Business Overview
What business is the company really in?
Who are the main competitors?
Is the company a leader or playing catch-up?
b. Risk Factors, Red Flags, and Green Lights
Are risk factors boilerplate (generic) or specific and growing?
Any mention of supply chain risk, major customers, new competitors, or legal trouble?
c. Financial Data, Trends Matter Most
Is revenue growing, stable, or shrinking?
Are profits rising faster or slower than revenue?
Is free cash flow positive, negative, or volatile?
d. MD&A, What Management Is (and Isn’t) Telling You
Does management sound confident and honest about problems, or gloss over bad news?
Are they blaming “macro conditions” or taking responsibility for performance?
Any major strategy changes?
e. Notes and Footnotes, Find the Hidden Details
Any unusual accounting changes?
One-off gains or losses that might mask underlying trends?
Details about debt, leases, or legal issues?
4. The 10-Q: Why Quarterly Reports Matter
The 10-Q is filed three times a year (every quarter except when the 10-K is due).
Shorter and less audited than a 10-K, but still critical for catching trends early.
Focus on updated financials, management’s commentary, and new risks since the last 10-K.
What to look for in a 10-Q:
Changes in sales, costs, or margins compared to last quarter/year.
New risk factors or legal issues.
Unusual spikes in debt or cash use.
Any restatements or corrections from previous filings?
Pro tip: Compare several quarters in a row. Is the company getting stronger, or is growth stalling out?
5. How to Access SEC Filings: The EDGAR System
Go to sec.gov/edgar
Type in the company’s name or ticker.
View all recent filings, sorted by date and type.
Download the full text, or use CTRL+F to search inside a report.
StockEducation.com also offers practical tutorials and research checklists to help you master SEC filings fast.
6. Going Beyond the Basics: Other Key SEC Filings for Serious Investors
While the 10-K and 10-Q are the backbone of public company disclosure, smart investors also keep an eye on other important SEC filings. Understanding these can give you an early edge, spot hidden risks, or highlight new opportunities.
a. 8-K: Material Events
What is it? An 8-K is filed anytime something “material” happens outside of regular quarterly/annual cycles. Examples: a CEO resigns, a big acquisition, a regulatory fine, a major new customer, or a restatement of financials.
Why care? 8-Ks are “breaking news” for companies. Markets often react quickly, so being able to interpret an 8-K gives you an information advantage.
b. Proxy Statements (DEF 14A)
What is it? Filed before annual shareholder meetings, the proxy details board elections, pay packages, and major governance votes.
Why care? Proxy filings reveal how much management gets paid (and why), who’s really in control, and any brewing shareholder disputes or activist campaigns.
c. Insider Transactions (Forms 3, 4, 5)
What is it? These forms disclose when executives and directors buy or sell company stock.
Why care? Heavy insider buying can be a bullish sign; heavy selling (especially by multiple insiders) can raise questions.
d. S-1 and Prospectus Filings
What is it? Used when a company goes public (IPO) or issues new shares.
Why care?Prospectuses are loaded with risk factors, business breakdowns, and often show how dependent the company is on a few products or clients.
7. How to Use SEC Filings for a Research Edge: Actionable Steps
a. Build a Research Routine
Always start with the most recent 10-K for big picture understanding.
Move to 10-Qs for current updates, quarterly trends, new risks, and changes since the last annual report.
Scan for 8-Ks for recent events, especially around earnings season or management changes.
b. Look for Patterns, Not Just Numbers
Compare financial trends year-over-year and quarter-to-quarter. Is growth accelerating, flat, or declining?
Notice changes in risk factors, management discussion tone, or accounting choices.
Track insider buys/sells over time, do they match management’s public optimism or tell a different story?
c. Red Flag Alerts: What Should Worry You?
Sudden management departures, especially if not explained in detail.
Unusually complex accounting or frequent changes in auditors.
Heavy insider selling after good news.
Growing list of “risk factors” or legal proceedings.
Restatements or corrections in 8-Ks.
d. Checklist for First-Time SEC Filings Users
Download the latest 10-K and 10-Q from EDGAR.
Read the business description. Do you truly understand the business?
Review multi-year financial trends. Are results getting better or worse?
Scan risk factors and MD&A for anything new, strange, or concerning.
Check the notes for one-off items, big accounting changes, or unusual deals.
Review compensation and governance in the proxy (DEF 14A).
Search for recent 8-Ks, any red flags or surprises?
Track insider trades and see if they align with the company’s public messaging.
8. Case Study: Real-World Example, Red Flags from SEC Filings
Example:In 2020, a fast-growing tech company’s 10-K showed a big jump in revenue, but the 10-Q revealed that most of the growth came from a single customer who was late paying. An 8-K filed soon after disclosed that the CFO had resigned “to pursue other interests.” Within months, the company restated earnings, the share price collapsed, and investors who didn’t read the filings were caught off guard.
Lesson: SEC filings give you the facts, if you’re willing to read beyond the headlines.
9. Frequently Asked Questions (FAQs)
Q: Are SEC filings only for U.S. companies? A: Mostly yes, but many foreign companies (“foreign issuers”) that trade on U.S. exchanges must file annual 20-F or 40-F reports, very similar to a 10-K.
Q: Do I need to read every page of a 10-K or 10-Q? A: No, but focus on the business overview, risk factors, MD&A, financial statements, and notes. Practice scanning and using search (CTRL+F) for keywords.
Q: Are filings hard to understand for beginners? A: They can seem overwhelming, but most sections are written in plain English. Start with summaries and work deeper as you learn.
Q: Can you trust everything in a filing? A: Filings are audited and must meet legal standards, but management can still spin results. Always use filings as a starting point, not the only source.
Q: Are there tools that make reading filings easier? A: Yes! EDGAR offers search and download functions. Third-party tools (like StockEducation.com’s tutorials) highlight important sections and offer checklists for new investors.
10. Where to Learn More: Resources & Internal Links
Ready to go from SEC filings rookie to research pro? See why more serious investors choose StockEducation.com:
Step-by-step tutorials: Learn how to use 10-Ks, 10-Qs, 8-Ks, and more, with annotated screenshots and video explainers.
Practical research checklists: Never miss a red flag or growth clue again. Our guides walk you through every must-read section.
Interactive learning: Practice on real filings with guided quizzes and expert feedback.
Advanced tools for all: Whether you’re just starting or want to level up, StockEducation.com gives you the skills that set you apart.
Start now atStockEducation.com, your best source for hands-on investor education, research skills, and real market edge.
11. Conclusion: Turn Filings Into Your Investing Superpower
SEC filings are the ultimate equalizer. While most investors chase headlines and opinions, you can dig into the primary documents, spotting opportunities and risks before they hit the mainstream.
Make reading filings a habit, and you’ll join the ranks of true pros. Combine your new skills with high-quality education and a curious mindset, and you’ll have the tools to make better decisions, avoid surprises, and build real investing confidence for life.
Always go straight to the source. Question everything. And keep learning.
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