The purpose is to understand how current events can affect future accounting results and stock prices. During the quarter watch your stocks. Look for an event that move the stock relative to the market. For one event you will present the details to the class.
(note: if your stock had a large movement on a given day and the overall market – DOW, NASDAQ, S&P 500 – has a similar movement, this is most likely not caused by a news event for your stock).
For the event
A. Find the news related to the event for the company. Describe the details of the event.
B. Describe what impact you think the news event would have on
1. the expected future accounting numbers (Revenues, Gross Profit, Expenses, net income, etc).
2. What affect do you think this will have on price?
C. What happened on the day of or the day following the news (did price go up, down or remain about the same)? If different than you expected, why? (Note: some news will not occur until after the market closed and thus the effect on price will be the following day.
Some things to consider:
Examples of events include quarterly earnings announcements (including guidance), changes in management, new stock issues, gain/loss of significant contracts, product recalls or defects, take overs, significant lawsuits, fraud, etc.
Does the news event give the company new direction or indicate management is making necessary changes? Such as A major reorganization, a new CEO.
Does the news event give the company a new chance (refinancing debt) or worsen their chance (bankruptcy)?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more