# Letter to shareholders (US. stockholders)

- Canonical URL: https://www.gerhardmerk.de/letter-to-shareholders-us-stockholders
- Post ID: 588804
- Modified: 2023-07-25T21:01:11+00:00
- Language: en

## Definition

Interim report by the Board of Management sent out by stock corporations to shareholders (and the business press), usually on a quarterly or semi-annual basis. According to critical evaluations (worldwide!The majority of the communications, following critical evaluations (worldwide!) of letters sent out, proceed as follows: - Presentation of adverse circumstances within the reporting period, - Assertion that the changed market conditions are regarded as a challenge, - Presentation of an action program (usual components: organizational adjustment, cost reduction, personnel restructuring, portfolio streamlining, shift of focus to core competencies and similar), - emphasis that the company feels well prepared to compete, - praise of the employees, - thanks to the shareholders, - promise of better results, - request to continue to be patient and to remain loyal to the company, and - concluding assurance that things would soon be looking up. - Up to now, it has proved very difficult to take legal action against recognizably partially true (factoidal) and embellished (beautified) statements in a shareholder letter. This is because the courts regard the letter to shareholders as a non-binding assessment (non-committal estimate) of the business situation by the management board. Therefore, the credibility of a letter to shareholders should not be subject to too strict standards. The same attitude was also taken by supervisory authorities with regard to corresponding action letters from financial service providers. - See shareholder, active, disclosures, inaccurate, disclosures, veiled, information delay, information overload, public disclosure, publicity, situational, salami tactics, sales figures, false, disclosure, immediate, circumstances, valuation, predictions. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1