Shareholders' letter

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Shareholders' letter

A section of an annual report where one can find general overall discussion by management of successful and failed strategies. Provides guidance for looking at specific parts of the report.

Shareholders' Letter

A section of an annual report providing general information to shareholders. Every publicly-traded company is required to distribute an annual report to shareholders each year. The shareholders' letter contains information on the company's financial state, such as operational income and net profit. Sometimes it also contains an accountant's opinion on the general health of the company. Generally, the shareholders' letter states the "bottom line," and shareholders may read the rest of the annual report to learn more detailed financial information. For example, the shareholders' letter may contain a brief essay stating, "Our company is healthy for reasons A, B, and C."