Public Company Information: Terms

SIC Code - four digit numerical codes set up by the government to identify what a company does. Most companies have more than one SIC Code. They tend to be listed in the order of what brings in the most money. Directories and electronic services allow searching by the SIC Code.

NAICS Code – new six digit coding system set up by the government to identify what a company does. Because the code goes up to six digits, it is much more specific. Not all directories or electronic services are currently using this code.

Public Company – corporation selling stock over one of the three major exchanges. These companies are required by law to file financial disclosure statements with the SEC. Business services use this information.

Subsidiary - when a dominant company or parent owns a majority of stock of another firm. The subsidiary remains a separately chartered firm.

Division - another form of organizational control. A corporation may set up a separate branch or division to produce or manage a group or product line or service. The division is closely integrated with the parent and is not separately chartered.

**Subsidiaries and divisions report to the parent, and the parent then bundles the information and reports to the SEC. Public companies are only require to report segment data from any line of business that contributes 10% or more to the total revenue or assets. If there are 3 divisions in the line of business, there will be no break down by individual division. If there is only one division in that business line, you might get some information.**

Private company – does not sell stock, or if they sell stock, it does not sell stock on one of the three major exchanges.   

Foreign Company - chartered outside of the United States. Some foreign companies (ADR’s) file with the SEC and sell stock over the exchanges. Information can usually be found on these companies.

Trade Publications – refers to magazines, journals and newsletters that are directed to a specific industry or profession (i.e. Oil & Gas Journal). Company information will often show up in trade publications before the general business press.