5 Reasons Why the Forward-Looking Safe Harbor Confounds

Nearly all disclosures made in SEC filings are historical. They look backward. That’s not much help to a stock market that pretty much only looks forward. Meaning that the entire exercise of drafting disclosures for SEC filings is an exercise in compliance. Not that sexy.

That’s why the quarterly earnings call is so important to investors. The same with investor presentations. They tend to give more forward-looking information to a hungry market compared to a company’s SEC filings. Some solace for investors looking for a kernel of what management sees coming down the pike.

In order to feel comfortable when they publicly look forward, companies provide this safe harbor in an attempt to protect themselves from getting sued if their expectations, their reasoned hopes, don’t match results.

Here are five reasons why the safe harbor confounds:

• Because we can
• Judges don’t like it
• Investors don’t care about it
• It does help refine your risk factors
• Make it fun (or is that annoying?)

For many more Vid-Guides dealing with corporate & securities law, corporate governance, E&S issues and more – particularly if you want to review any Vid-Guides referred to during this Vid-Guide – see the list of Vid-Guides spread throughout these categories:

• Corporate Governance
• Proxy Season
• Executive Pay
• ’34 Act/Other
• ’33 Act/Deals
• Sustainability/E&S
• Career Advice
• Fun Party

And since all the content on ZippyPoint.com is complimentary, please “Pay-What-You-Can” to help keep this fine platform alive & well…