Definition
An annual report is a document that a company prepares at the end of every financial year. It gives a complete overview of the company's performance, including its financial results, business activities, and future plans. It helps investors understand how the company is performing.
Example
For example, a company publishes its annual report showing details such as revenue, profit, expenses, and growth for the year. An investor can read this report to understand whether the company is performing well.
Caution
While an annual report provides useful information, it may emphasize the company's positive achievements. Investors should also review financial statements, regulatory filings, and other reliable sources before making investment decisions.