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This is also true. Back when I was drafting my then-company's Form 10-K annual reports, for just that reason I loaded up the risk section with a list of all th
by dctoedt 7y ago
This is also true. Back when I was drafting my then-company's Form 10-K annual reports, for just that reason I loaded up the risk section with a list of all the things that could go wrong, based on studying similar lists from the big software companies. It's sometimes known as vaccination or inoculation — "hey, we told you all these things that could make our stock price go south!"
(The danger with this approach, of course, is that if you inadvertently leave something out, the plaintiffs' lawyers will spotlight the omission and argue, "they LIED!")
- rdslw 7y agoYour actions are reason, why this (yours incl) sections are useless from investor perspective. Take for example a risk from We Work company S1: > the sustainability of our rapid growth and our ability to manage our growth effectively; translation: getting older may cause you die. in other words: dont put your cat to microwave, and beware as your tea might be hot in your cup.
- dctoedt 7y agoIt's all about the incentives.