Definition of '500-Shareholder Threshold'
A company is considered to have more than 500 shareholders if it has 500 or more shareholders of record at any time during the preceding 12 months. Shareholders of record are those who have their names listed on the company's stock ledger.
If a company has more than 500 shareholders, it is required to file the following reports with the SEC:
* Annual report
* Quarterly report
* Proxy statement
* Form 10-K
* Form 10-Q
These reports provide information about the company's financial condition, operations, and management. They are important for investors because they help them to make informed decisions about whether or not to invest in the company.
The 500-shareholder threshold is designed to protect investors by ensuring that public companies provide them with the information they need to make informed investment decisions.
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