(a) (b) What is the relationship between a firm's profits and its stock price? If the decrease in Burberry's profits had not been a surprise, would the effect of the announcement on its stock price have been different? Briefly explain.
(a) (b) What is the relationship between a firm's profits and its stock price? If the decrease in Burberry's profits had not been a surprise, would the effect of the announcement on its stock price have been different? Briefly explain.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Stock markets and stock prices react to financial news related to the company.
A company announces its financial results in each quarter and the stock market reacts to these results by comparing the announced results with their expected figures.
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