1. Acquire fundamental knowledge of investment analysis and selection to make prudent investment decisions

2. Annual Reports The annual report to shareholders is a document used by most public companies to disclose corporate information to their shareholders. It is usually a state-of-the-company report, including an opening letter from the Chief Executive Officer, financial data, results of operations, market segment information, new product plans, subsidiary activities, and research and development activities on future programs. Reporting companies must send annual reports to their shareholders when they hold annual meetings to elect directors. Under the proxy rules, reporting companies are required to post their proxy materials, including their annual reports, on their company websites.

3. Discuss the purposes of annual reports Provides Financial Information An annual report provides information on the company’s fiscal year. Graphs or charts can be included to break down complicated information and make it more understandable. Financial notes also may be added to explain accounting methods the company uses to report and record its transactions Additional information found in notes may detail how your company allocates pension plan contributions, how equipment has depreciated over time or more detailed information about stock option compensation

4. Discuss the purposes of annual reports Highlight Achievements Annual reports provide information on the company’s mission and history and summarize the company’s achievements in the past year. While financial achievements are included, other achievements also are noted, such as research advances, market share gains or honors awarded to the company or its employees. The achievement section also may include information on such things as sales increases or new machinery that increases profitability and productivity. The chief purpose of the achievements section is to make shareholders and stakeholders feel good about their investments or participation in your company.

5. Identify the elements of a corporate annual report Letter from the chairman -The letter from the chairman of the board is the traditional place for a company's top management team to tell you what a great job it did during the preceding year and to lay out the company's goals and strategies for the future Sales and marketing – This section contains complete information about a company's products and services, as well as descriptions of its major divisions and groups and what they do Summary of financial results - Assuming that a company is at least ten years old, many annual reports contain a presentation of financial results over that period of time. This is a terrific place to look for trends in growth (or non-growth) of revenues and profit and other leading indicators of a company's financial success

6. Identify the elements of a corporate annual report Management discussion and analysis: This is the place where a company's management has the opportunity to present a candid discussion of significant financial trends within the company over the past couple years. Letter of CPA opinion: To be considered reliable, a company's financial statements have to be reviewed and audited for accuracy by a qualified Certified Public Accountant (CPA). In this letter, a CPA firm states any qualifications that it has with the financial statements Financial statements: Financial statements are the bread and butter of the annual report

7. Identify the elements of a corporate annual report Subsidiaries, brands, and addresses: Here you find listings of company locations domestic and foreign and contact information, as well as brand names and product lines. List of directors and officers: Corporations typically have boards of directors — senior businesspeople from both inside and outside the organization — to help guide them and provide a broader view of markets and business environments than that seen by internal managers. Officers include the president, chief executive officer (CEO), vice presidents, chief financial officer (CFO), and so forth

8. Identify the elements of a corporate annual report Stock price history: This section gives a brief history of stock prices and dividends, showing upward and downward trends over time. Included is information on a company's stock symbol and the listing stock exchange, for example, the New York Stock Exchange or NASDAQ

9. Discuss the value of reading a company’s annual report The annual report is one of the most complete and objective sources of information available on every public company. Many annual reports appear, at first glance, to be only glossy pieces of marketing material. In fact, most companies exert considerable effort to produce an attractive annual report and, quite reasonably, try to accentuate the positive by highlighting information that readers will interpret favorably

10. Performance Activity Individuals need to view or print out the annual report for its employer. The best source is usually the employer’s own web site. (Viewing reports online saves print costs and allows students to search the report’s contents.) Each team should then prepare a one- page written report that identifies each part of the employer’s annual report, briefly describes the content of its letter to shareholders and management’s analysis.