What is 10 K?
Imagine your school gives you a report card at the end of the year. A 10-K is like that for a company! It's a big report that shows how well the company did with its money during the entire year.
What is 10 Q?
Now, imagine your school also gives you a mini report card every few months. That's like a 10-Q! It's a shorter report that shows how the company did in just three months.
Key Differences
The biggest difference is how often they come out. The 10-K only comes out once a year, while the 10-Q comes out four times a year (every three months). Also, the 10-K has more details about the company's money and activities than the 10-Q. Think of it like this: the 10-K is the full story, and the 10-Q is just a chapter.
Another difference is what they're used for. The 10-K is great for getting a complete picture of how the company did over the whole year. The 10-Q is better for seeing if the company is improving or getting worse more recently.
When to Use Each One
Let's say you want to invest in a candy company. You could look at their 10-K to see how much candy they sold last year and how much money they made. This will help you decide if they're a good company to invest in for the long term. Then, you could look at their latest 10-Q to see if they're still selling lots of candy this year. This will help you see if things are changing.
The Bottom Line
Both 10-K and 10-Q reports are like tools that help you understand how companies are doing with their money. The 10-K gives you the big picture, and the 10-Q gives you updates. By using both, you can make smarter choices about which companies to support or invest in!