4. Earnings and Corporate Announcements
“To be angry at the market because it unexpectedly or even illogically goes against you is like getting mad at your lungs because you have pneumonia.”
—Jesse Livermore
Many shocks that buffet individual stocks on a daily basis are precipitated by company-specific news or actions. The changes may be large or small, long lasting or short-lived. The impact might be limited to one company’s stock or spread to other stocks in the same industry or the market as a whole. These market shocks may arise from earnings or special dividend announcements, lawsuits, sales or new product announcements, executive suite changes, merger or acquisition announcements, and regulatory actions. A myriad of potential examples are ...
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