Final answer:
Financial Reporting Rulings would not be found in a firm's annual report, as they are industry-wide standards, not firm-specific information. The annual report contains financial statements, auditor's reports, and stock price ranges.
Step-by-step explanation:
The information that would not be found in a firm's annual report is Financial Reporting Rulings. A firm's annual report typically includes notes to the financial statements, the auditor's report, and stock prices, which cover the high and low points. However, financial reporting rulings, which are standards set by regulatory bodies like the Financial Accounting Standards Board (FASB) or the International Accounting Standards Board (IASB), are not specific to an individual firm's annual report but are guidelines that inform how financial reports should be prepared across all firms.
Understanding corporate governance is crucial, as it denotes the institutions tasked with overseeing the actions of a firm's top executives. Due to imperfect information and potential failures in corporate governance, it is not possible for a financial investor in stocks to guarantee high capital gains simply by investing in companies with a record of high profits. The market's knowledge of such profits is typically already reflected in the stock price, and any potential gains are often mitigated by the time public investors can act on this information.