Risk Factors Security Filings

Risk Factors in Securities Filings: What Companies Must Disclose

Regulatory Background

SEC Risk Factors
  • Short sentences
  • Active voice
  • Avoiding legal jargon to the extent possible
  • Use bullet point lists to make complex concepts more reader-friendly

Material Risks: Deciding What to Disclose

Types of Risk Factors

  • Risks related to acquisitions
  • Risks related to competition
  • Lack of operating history
  • Dependence on key employees
  • Risks relating to key suppliers or key customers
  • Current material litigation
  • Labor shortages
  • Risks of increased costs of raw materials
  • New regulatory regimes
  • General economic conditions
  • Seasonality of the business

Investment or Securities Risk Factors

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Carpenter Wellington PLLC

Carpenter Wellington PLLC

64 Followers

Ryan Carpenter serves as Attorney and Managing Director of Carpenter Wellington. Ryan advises clients across a broad set of corporate and commercial matters.