
The best way for an individual investor to fight stock fraud is to become
better armed with reliable information. Even when working with a broker or an
investment adviser, investors should always obtain detailed written information
about the company that they are investing in, its business plan, finances, and man-
agement. Company annual reports to shareholders often give a good overview of
the company’s historical performance and future prospects. Although the always
colorful annual report is a promotional document that places the firm’s perfor-
mance in the most favorable light possible, the plain, black-and-white annual 10K
report to the SEC gives a ...