FIN370 WEEK 2 INDIVIDUAL ASSIGNMENT Company Evaluation Paper Starbucks

Starbucks: The SEC and Financial Performance
Starbucks is a publicly traded company and all publicly traded companies have to meet
the legal requirements imposed on them by the Securities and Exchange Acts of 1933 and 1934
(Securities Laws, Rules, Regulation and Information, 2008). These Acts require publicly traded
companies, like Starbucks, to give potential investors specific information about any stock
offered for sale, such as notices about the registration of shares (Securities Laws, Rules,
Regulation and Information, 2008). SEC laws also require companies to be honest and require
them to disclose any stock purchased or sold by company executives and to file quarterly 10-Q
and annual 10-K reports on the company’s financial results with the SEC (Securities Laws,
Rules, Regulation and Information, 2008). Companies must also provide shareholders with
annual financial statements and proxy materials and information about annual shareholders’
meetings (The Investor’s Advocate, 2009). These disclosures are meant to assure investors have
as much information as possible about their investments and potential investments. Investors can