4.14 EARNINGS NEWS RELEASES
In the US, publicly reporting companies are required to file three quarterly reports and one annual report which are made available for free to the public. Businesses that trade on the major exchanges release an earnings news article at the same time, which is usually transmitted via a newswire business such as PR News Wire, Business Wire, or Market Wire.
To put together such a critical piece of news, corporations invest a considerable amount of time and money, using multiple resources from top senior managers, accountants, auditors, legal teams, and investment relations teams.
The earnings news release is a critical moment in the lifecycle of any public company. This is when investors have an opportunity to re-assess the valuation of the company, which reflects directly on the value of the stock price.
This is a very time-sensitive piece of news and quickly understanding its potential impact may be critical for investors and traders alike.
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