- Like any other legally mandated documentation, firms must pay for Form 8-K. In addition to potential fines for late filing, there are expenses associated with preparing and submitting the documents.
- The requirement to submit Form 8-K also discourages small firms from going public in the first place, but it is just a tiny portion of the issue.
- Enforcing information provision from businesses aids in the decision-making of investors. However, if the burden on firms is too great, it may limit their possibilities for investments.
Form 8-K: Meaning, Benefits, Drawbacks & Requirements