What is the Electronic Data Gathering and Retrieval (EDGAR) System?

EDGAR stands for electronic data gathering, analysis, and retrieval. EDGAR is a system created by the Securities and Exchange Commission (SEC) to facilitate electronic filing with the agency. The objective of the system is to increase efficiency, save time and money, and make accessibility more convenient.

How does the EDGAR System Work?

EDGAR enables companies to file corporate documents with the Securities and Exchange Commission (SEC). Companies may file income statements, balance sheets, statement of cash flow, and a variety of other corporate documents required of reporting companies. These documents contain information for disclosure to investors, potential investors, and other creditors. The information filed through EDGAR is well-structured, regardless of the company size and nature. For instance, if investors want to know whether the company has switched any accounting principles in the accounting period, the investor can find this information in Part 2, item 9 in the annual report or (10-k). The drawback of EDGAR is that the information that is filed is in a different format from the financial reports that investors traditionally use to make decisions. The filings generally contain all the information in a single text. Many investors consider it more difficult to find the needed information.

Using the EDGAR Database

EDGAR database enables users (creditors, investors, shareholders and more) to easily access company information. The company may be searched by using company ticker symbol. Also, the search interface displays those companies in the search list first which have recently filed information. Users can download information from most companies without charge. The information that can be accesses include quarterly, annual reports, financial statements, form 10-k which contains company overview, history, information about products, organization structure, and the company's markets.