Public Markets · Accountability

QL Red Flag Ledger

An auditor walks. Management says last year's numbers can't be relied on. The CFO resigns on a Friday. Each one lands on EDGAR as an 8-K with an item number, on a date, in a filing — and then it becomes folklore: "restatements are death", "CFO exits are noise". This ledger seals every one of those flags the day it is indexed, marks the stock against SPY from the undisturbed close before the filing, and publishes the base rate per flag type. What the tape actually does after a red flag, with the filing as the receipt.

Flags graded
twelve months each, since 2023
Confirmed
stock fell 5pp+ behind SPY at twelve months
Median 12-mo excess
SPY minus the stock · positive = flag confirmed
Live flags
under twelve months old
Fresh flags
filed in the last 30 days

The Live Board

Flags under twelve months old — the ones a desk can still act on. Newest filing first. Undisturbed is the close before the filing; vs SPY is measured from there, from the flag's side.

CompanyFlagFiledUndisturbedReactionReturnvs SPY3-mo vs SPYCompany's flags
Loading the board…

Base rates by flag type

The product. For each kind of flag: how many, how many graded, how often the stock fell 5pp+ behind SPY at twelve months, and the median excess at each horizon. A type is labelled only past 10 graded flags. Positive means the flag was confirmed.

Flag8-K itemFlagsGradedConfirmedReaction1 mo3 mo6 mo12 mo
Loading base rates…

Most flagged companies

Flag density: companies ranked by flags in the trailing twelve months, then all-time. Click a company for its full history. Records are computed from the graded rows, never asserted.

CompanyFlags (12m)All timeKindsLast flagGradedConfirmedMedian 12-mo vs SPY
Loading…

What the tape says

The distribution a desk sizes with: excess return (SPY minus the stock) at each horizon across every priced flag. The median is the headline; the quartiles are the risk.

HorizonFlagsMeanMedian25th pct75th pct10th pct90th pctConfirmed side
Loading…

The Graded Record

Every flag that reached twelve months — the return from the undisturbed close, SPY over the same dates, the excess from the flag's side, the verdict and the EDGAR receipt. This record stays public at every tier.

CompanyFlagFiledUndisturbedReaction1 mo3 mo6 mo12 moVerdictReceipt
Loading the record…

How grading works

1 · The item is the flag

A flag is admitted only when EDGAR's structured item list carries it — 4.01, 4.02, or 5.02 with resignation language. No document is parsed and no model reads a filing. Blank-check companies, funds and trusts are excluded: their churn is structural.

2 · Undisturbed entry

Entry is the close before the filing date, so the market's first reaction is inside the measurement. The reaction is the two-session move from there.

3 · SPY over the same dates

Every horizon subtracts SPY between exactly the same closes. Returns are split-adjusted; a horizon grades only when a session sits within tolerance of the target date.

4 · From the flag's side

Excess = SPY minus the stock. Confirmed is 5 points or more; false alarm is −5 or worse; between is noise. A tape that ended early (delisting, acquisition) grades on its last print and says so.

5 · Base rates are labelled late

A flag type carries a label only past ten graded flags; a company only past two. Everything before that is shown as accruing, never asserted.

6 · Survivorship is disclosed

Filings whose issuer has no ticker in EDGAR's index — often delisted since — are counted and shown, never dropped. They bias the base rates toward the companies that survived, and the ledger says so.

QL Red Flag Ledger is diagnostic research about public filings and prices, not investment advice and not a fraud detector. Flags link their EDGAR filings; returns are arithmetic on split-adjusted closes; SPY is the benchmark over identical dates. A red flag is a disclosure event with a measured aftermath — the base rate is the point, the individual case is the receipt.

Frequently asked questions

What is the QL Red Flag Ledger?

A public, forward-graded record of accounting and governance red flags disclosed on SEC Form 8-K: auditor changes (Item 4.01), restatements and non-reliance on prior financials (Item 4.02), and CEO or CFO exits (Item 5.02 with resignation language). Each flag is sealed the day EDGAR indexes it and graded against SPY at 1, 3, 6 and 12 months from the undisturbed close before the filing. The receipt is the filing itself.

How is a red flag graded?

Excess return is SPY's return minus the stock's return over the same dates, so a positive number means the stock fell behind the market after the flag — the flag was confirmed. A flag grades at twelve months or when its tape ends. Verdicts: confirmed (five points or more), false alarm (minus five or worse), noise (between). Base rates per flag type are labelled only past ten graded flags.

What does the free tier see?

The base rates, the distributions, the full graded record with EDGAR receipts, every company's flag history and the methodology are public at every tier. The live board of flags under twelve months old is Institutional; lower tiers see a laddered preview of fully priced rows and identity-only rows beyond it.