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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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."
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
"Twitter continues to help our partners be relevant in the moment at scale," chief executive Jack Dorsey said in the quarter's shareholders letter. Stronger ad sales in the crucial holiday quarter made up the difference for Twitter, even as the number of new people joining the site continued to stagnate.
Technological innovation and globalization are driving opportunities for change, he wrote in his annual shareholders letter in April.
The Fool quoted from Buffett's 2012 shareholders letter, where he wrote, "papers delivering comprehensive and reliable information to tightly bound communities and a sensible Internet strategy will remain viable for a long time."
Leland opted for a question-and-answer format to his comments rather than the usual shareholders letter. Likewise, most copy in the report is written in interview style with actual employees telling the company's story in their own words.