From SEC EDGAR Filings to Real Time Data Profits

EDGAR (Electronic Data Gathering, Analysis, and Retrieval) is a public database maintained by the U.S. Securities and Exchange Commission (SEC). EDGAR is used for automated collection, verification, organization, and dissemination of reporting documents submitted by firms as part of their regulatory responsibility as publicly traded companies.  The SEC was formed to oversee equity markets in the aftermath of the Great Depression, but EDGAR itself is a far more recent creation, designed to facilitate more real-time transparency in markets (especially for smaller investors, who can’t just send an intern over to the SEC office to request some paperwork).

It can be interesting to explore EDGAR for yourself. But be warned, it’s truly a sea of information. Representative reporting documents housed in the database include:

  • Initial stock registration documents like the Prospectus that detail the operations and finances of a firm when it first registers to be offered as a publicly traded stock.
  • Annual reports with highly detailed operational information: the 10-K.
  • Quarterly reports, less detailed than annual, and more focused on ongoing financial updates: the 10-Q (accompanied by an often profitable press release)
  • Major unexpected events like acquisitions and declarations of bankruptcy are recorded using a reporting form called the 8-K.

Many more types of form exist, but this list covers the core documents that investment analysts are using EDGAR to retrieve.

Now, how to profit from this information? Traditional buy-and-hold investors can certainly use this information to research any given stock purchase. Using EDGAR to query individual forms, however, would be an incredibly cumbersome process for investors employing a more dynamic trading strategy. These investors are trying to understand not just the information in the reports, but how these reports have historically affected markets. 

That’s where a real-time analytics platform like NewsQuantified comes in. We’ve tied real-time reporting of EDGAR submissions/publications to live data from equity markets, creating a true suite of information for smaller investors looking to get in on the consistent profits driven by business news events:

  • Consolidated data streams for speed-of-market analysis: our summary pages for each publicly traded stock (here’s the page for Tesla as a sample) feature tabs including both SEC filings and other newsfeed sources. This setup makes it easy to quickly see how much any given report impacted the price of a stock. You can also readily compare the market’s reaction to EDGAR filings as opposed to news-publications of the same event (which can come before or after depending an EDGAR filing depending on how the news broke).

Sample

Fig. 1: News Events and SEC Filings for each stock are displayed in sorted tabs with links to impact reports for individual events/filings.

  • Fully searchable data with custom, savable filters: You can filter our immense dataset of regulatory filings and other financial news-events using a variety of parameters. Figuring out for instance, “what SEC filings from the past week caused stocks to jump more than 5%,” takes seconds. Savable filters allow you to create readily repeatable workflows for analyzing filings and other news-events.
  • Price Data: the fundamental differentiator between NewsQuantified and raw EDGAR data is the synthesis of SEC documentation with real-time price data: by understanding how different filings for different companies affect the market, you can learn how to profit from them. This data is also vital for quickly weeding out unprofitable strategies: for a given stock, for instance, perhaps executives have a habit of teasing results before formal filings, liming the impact of actual filings. Another microcap stock may be under-covered by the financial press and hugely swung by its formal filings.

Our system for utilizing EDGAR data is part and parcel of our overall approach: profit from history. Some hard programming and data work is the key to transforming publicly accessible information into a consistently profitable trading approach (a fact hedge funds have understood for years). If you’d like to learn more about how we use news, data, and sound strategy to consistently find market-beating profits, we highly recommend one of our totally free virtual training sessions. We’ll show you our platform in more detail and go over the foundations of news-based trading. You can sign up using the button below:

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