Was someone really supposed to study a Form 10-K prior to making an investment? To many investors the answer is yes. By understanding what is a 10-k is, you can get a grasp of the company's financial state, business model, and risks. A SEC 10K is an audited financial statement which may not be available in shorter reports. One way to compare is to compare it to Form 10-Q to gauge business performance during the year. These reports will provide investors with more confidence in assessing companies and making investment decisions for the long-term.