Categories: Investor Definitions

Item 2.01 – Completion of Acquisition or Disposition of Assets | 8-K Explained

If a company acquires or disposes of a significant amount of assets, the company must file an 8-K to describe the terms of the transaction. Examples include buying or merging with another company, or selling a business unit. A company that is no longer a “shell company” as a result of a merger would also use this item to provide investors with comprehensive information about the other merging company. A shell company is a company that either has little or no operations or has little or no assets other than cash and cash equivalents.

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