Question 73—Earnings Reports

Which statement about the impact of earnings reports is incorrect?
1. Prices are largely driven by the anticipation of future earnings.
2. An earnings report never changes a long-term stock trend.
3. Earnings reports rarely come as a surprise to professional watchers.
4. Insider trading is usually linked to the way a company is managed.

Get The New Sell and Sell Short: How to Take Profits, Cut Losses, and Benefit from Price Declines, Expanded Second Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.