Taking the time to compile thorough research on publicly traded companies involves gathering numerous records. Every aspect of a company, including its practices, corporate composition and financial habits, plays a part in its success or downfall.

When you are putting together public company research reports, it is important to ensure you are using information from reputable sources. Consider the following research on publicly traded companies basics to help you start your research:

1. Understand exactly what a publicly traded company is and what benefits and risks are associated with them.

2. Gather online information about publicly traded companies.

3. Access annual statements on the company.

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Know the definition of a publicly traded company

A publicly traded company is a company that has offered stocks to investors on an open market. This is the exact opposite of a privately held company, which doesn't have shares on the open market. A publicly traded corporation has to keep shareholders informed of decisions and has to follow regulations and standards set by the Securities and Exchange Commission.

I recommend: InvestorWords.com and Investopedia both offer easy to understand definitions of publicly traded companies. InvestorWords.com offers a basic definition. Investopedia offers an in depth explanation.

Find online information about the publicly traded companies

Researching public companies online enables you to collect information from multiple sources. This can give you an in depth look at the company's past and the potential it has in the future. All of this information can help you decide if you should invest in the company or do business with the company.

I recommend: InvestorGuide.com offers an alphabetical search tool that offers links to information about publicly traded companies, including news about the company, offerings and overviews. You can research publicly traded companies on the U.S Securities and Exchange Commission website. A company profile and financial information is available for all publicly traded companies required to file documents with the Commission.

Get annual reports on a publicly traded corporation

Annual reports are an ideal way to determine how the company has fared in the prior fiscal year. These reports can give you an idea as to how the publicly traded company will perform in the current fiscal year and in the future.

I recommend: The Public Register's Annual Report Service offers annual reports about many publicly traded companies. You can search by industry or state to make finding companies easier. IPO Central offers annual reports and other information on public companies, including companies who have registered to go public.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When you do research on publicly traded companies, ensure that you take the financial, ethical and corporate profiles into account as all three of these work hand in hand.

When doing research on a publicly-traded corporation, check various sources to get a complete profile. The Internet is full of good and bad information on public companies, so be sure to know the reliable sources. Look for sources that offer comparative analysis of various companies.

The information you research is likely going to impact how you do business, so be sure you can rely on it. When looking up information on public companies, review the following items to get a complete analysis:

1. Earning estimates, trends and performance for a publicly-traded company
2. Analyst ratings and reports on publicly-traded companies
3. Company ownership information and SEC filings in public company profiles
4. Stock quotes, charts and performance for the company

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Use reliable sources to find research on publicly-traded companies

The amount of information available online about a publicly-traded corporation can be overwhelming. Get to know a few reliable sources that you can depend on for your investing needs. Credible news sources often offer the latest research on companies, along with stock quotes and PR feeds. News organizations can also allow you to set up e-mail notifications when breaking news happens on the company you are researching.

I recommend: Yahoo! Finance has company profiles by industry. Forbes has a list of the largest publicly-traded companies. MSN Money also has the latest news and information on companies.

Compare a publicly-traded company against others in the industry

When doing research on publicly-traded companies, begin by comparing them against others in the same industry. Compare stock quotes, company performance and trends against one another. Research publicly-traded companies to make key decisions within your business. When researching public companies, you need a broad view of the other companies in the same sector.

I recommend: The New York Stock Exchange has a list of publicly-traded companies. Investor Guide offers a list of companies with links to the company website. Financial Times has company research by sector.

Use online tools to follow a publicly-traded corporation

Online tools can do much of the research for you, from e-mail alerts when something changes on a company to stock tickers on your desktop. You can also use online news feeds to get the latest research on a company. These feeds can be viewed on a variety of sites or can sometimes be added to your blog.

I recommend: MarketWatch has tools to follow a stock, get news feeds on a company and e-mail alerts. TheStreet.com has screeners for any company stock or data. Kiplinger.com has tools and calculators for public company analysis.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Read blogs and columns about a publicly-traded corporation to get a full perspective.
• •  There are reports available on publicly-traded companies for a fee prepared by investment companies.

Deciding to invest in publicly traded companies is a decision which takes a considerable amount of research. Some investors read only basic information about the company. While this strategy works sometimes, it is often necessary to research publicly traded companies more thoroughly in order to make a good investment decision.

Making the most of research on publicly traded companies involves sorting through information that some investors simply glance at. When you are researching potential investments, consider the following suggestions:

1. Take press releases and publicized news from the publicly traded company into account.

2. Determine how the company handles trends and changes in the economy by scrutinizing past stock quotes.

3. Obtain a copy of all records on the company, including financial records and annual records, to determine the spending habits of the company.

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Get updates on news from publicly traded companies

Publicly traded companies issue press releases and other company news to alert stock holders and potential investors of what is going on in the company. While these updates aren't usually included in a public business profile, they are valuable tools in determining if you should invest in the company.

I recommend: The U.S. Securities and Exchange Commission keeps records of the press releases publicly traded companies put out. You can search current records, archived records or records for one specific company. You can search for news about publicly traded companies at MSN Money. This website offers searches by stock symbol.

Check stock information on public companies

When you are researching public companies, checking stock information allows you to determine how the companies fare during economic events and other external factors. Using this information in conjunction with the other information you collect enables you to make the most appropriate decision concerning your investments.

I recommend: You can get up to the minute stock information on publicly traded companies at Yahoo! Finance. This website also provides public company analysis of past performance. Quote.com has instant stock quotes. This company offers tools to help investors interpret the data presented.

Find past records of the publicly traded corporation

Looking at a publicly trades company's past records, such as archived annual records and financial records, can tell you a lot about a publicly traded company. These records show you how a company spends the money it earns. This gives you a basis to determine how you think the publicly traded corporation will perform financially in the future.

I recommend: You can find annual reports, which includes financial reports, of many publicly traded companies at Public Register's Annual Report Service. You can search by state and exchange, or industry to make your search easier. InvestorGuide.com offers an alphabetized search for research on publicly traded companies. You can also search by industry or sector, if desired.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you are still unsure about the future of the publicly traded company after reviewing the research, consider getting a forecast for the company. There is software available for forecasting or you can get a forecast from a stock broker or analyst.

All investors, whether individuals or businesses, should do research on publicly-traded companies before buying stock. Research on publicly-traded companies can come from a number of reliable resources, including the company itself, the federal government and a host of independent financial organizations. A research report on a publicly-traded company will take time to compile, but will give investors a clear picture of the stability or volatility of any publicly-traded company.

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Publicly-traded company

A publicly-traded company offers shares of common stock to the public. Investors are able to purchase these shares; the buying and selling process is completed in organized exchanges. Publicly-traded companies are also regulated by the SEC.

I recommend: Business Knowledge Source provides information on the benefits of a company becoming a publicly-traded company.

U.S. Securities and Exchange Commission (SEC)

The Securities and Exchange Commission is the federal regulatory agency for all securities and stock exchanges. Since a publicly-traded company provides shares on exchanges, the SEC regulates these companies.

I recommend: Search for any publicly-traded company through the Securities and Exchange Commission website. The commission provides annual reports, IPOs and registration statements for these companies.

Annual report

An annual report is a statement prepared by a company to share information with customers, shareholders and the general public about the financial status of the company, future projects and information on management. A more detailed annual report is filed with the SEC.

I recommend: IBM provides tips on how to read an annual report from a publicly-traded company.

Company ownership

Company ownership refers to the actual owners of a company. Many smaller companies are owned by larger companies, so this information is valuable when compiling research on a publicly-traded company.

I recommend: NOLO provides information on the different types of company ownership structures.

Earning estimates

Earning estimates are the monthly or quarterly estimates of a company's profit. They are based on the average of the highest and lowest estimates from analysts.

I recommend: The Street provides a primer on understanding earning estimates and how to interpret earnings reports.

Stock performance

Stock performance is the information provided by the daily trading price of a stock. Stock performance can be tracked over a specific period for research purposes.

I recommend: The Stock Market Wizard provides information on how sales and earnings growth can affect stock performance.