Juan, a friend of yours, just inherited some money from his great-aunt and is trying to decide how to invest it. He has come up with some companies that he's interested in and has been doing a little research online. You meet for lunch, and while you're waiting for your order, you ask him how the research is going.
"It's amazing!" Juan exclaims. "Everything I need to know about the companies is right there online! It's great for me, but I don't know why the company goes to so much trouble."
What would you tell Juan about why the company makes this information available? What would you tell him about using the online information to make decisions? Suggest one response to each of these questions. Then, respond to another student's suggestions by playing devil's advocate - take the opposite position just for the sake of argument.
What would you tell Juan about why the company makes this information available?
-- The main reason why companies make their information available online is to attract investors. The SEC requires that all public companies release certain financial and non-financial documents, which include changes in company structure, financial statements, and other such types of documents. Most companies also make the same information available through their websites, so ...
This solution discusses the scenario of Juan and his recent inheritance from a great-aunt. A comprehensive discussion of all questions presented is provided.