What is EDGAR?
EDGAR – Electronic Data Gathering Analysis and Retrieval– is an acronym for the filing process employed by the SEC, which is the regulatory body employed by the Federal Government of the United States with regard to the authorization of legality existing within the realm of the public investment market. The EDGAR system is defined as an investigative measure undertaken within the SEC Filing process; prior to the granting of permission to participate in public trade and exchange of a company’s stocks and securities, that company will be required to both provide all applicable documentation, as well as receive approval from the SEC and the submission of applicable documentation and forms.
Components of the EDGAR Filing Process
Within the engagement of Electronic Data Gathering Analysis and Retrieval, individual companies and corporations wishing engage in trade and exchange activities undertaken of the public market, which is also known as the stock market, are required to fulfill the requirements expressed by the SEC; within the realm of EDGAR, there exist a variety of stages to complete prior to the receipt of approval:
Companies may be required to provide any or all financial history with regard to the source of their respective funding; this is required in order for the Committee overseeing EDGAR to properly ascertain the nature – as well as the implicit legality – with regard to the funding of a respective company.
The mention of any or all holding companies, subsidiary companies, or mergers with regard to the ownership and operation of an individual company; the provision of this information allows for the Committee responsible for overseeing EDGAR to review any potential areas for collective or conspiratorial financial activity to take place.
The provision of earnings reports in tandem with spending reports; the provision of this material allows the Committee overseeing EDGAR to ensure that funds and monies earned by an individual company are not – or have not been – the subject of misappropriation or fraudulent activity; the nature of fiscal activity undertaken by an individual company allows for the accounting of funds, which substantiates lawful and ethical disbursement.
The provision of any or all reports of past criminal indiscretion with regard to finance and capital; the ‘EDGAR Process’ allows for the general populace to be privy to pertinent information with regard to the operation of an individual company – although past indiscretions do not necessarily constitute for rejection by the Committee overseeing EDGAR, that information is legally required to be made available to the general public.
The Purpose of EDGAR
The implementation of EDGAR was enacted as a preventative means undertaken by the Federal Government of the United States in order to not only regulate, but maintain authority over the financial activity undertaken by companies and corporations engaged within the trade and exchange activity taking place within the setting of the public, open market. The prevalence of government regulation, which is considered to be one of the many benefits of the EDGAR process, allows for the strict adherence and uniformity with regard to applicable legality concerning financial, as well as commercial matters.