Why are 10 Ks So Important In Understanding a Company?

Answer 1

First of all, I think a potential investor should want to do their own analysis rather than rely on someone else. The 10-K’s are prepared according to requirements set by the Securities Exchange Commission. Therefore, the data is presented in a somewhat uniform format between companies.
That does not assure that the reader is always guaranteed not to get frustrated with the company. I personally often read 10-K’s that either do not give me the information I want or that I feel the company is presenting information in a less than transparent fashion.
On the other hand, there are some other companies that seem to do everything possible to present information to the reader as transparently as possible. I read earnings reports, industry reports, and other information as well as the 10-K’s.