Simple English definitions for legal terms
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A smaller reporting company is a type of company that has less strict disclosure requirements than other reporting companies. To be considered a smaller reporting company, a company must have a public float of less than $250 million or less than $100 million in annual revenues and a public float of less than $700 million. Once a company qualifies as a smaller reporting company, it is required to disclose less information about executive compensation and management discussion and analysis. Additionally, it only needs to provide two years of income statements and cash flow statements instead of three.
A smaller reporting company is a type of company that has fewer disclosure requirements than regular reporting companies. The Securities and Exchange Commission (SEC) has established specific criteria for a company to qualify as a smaller reporting company.
To qualify as a smaller reporting company, a company must:
Once a company qualifies as a smaller reporting company, it is subject to relaxed disclosure requirements. For example:
For example, if a company has a public float of $200 million, it can qualify as a smaller reporting company and only needs to provide two years of executive compensation and MD&A, and two years of income and cash flow statements.