If the expected earnings of a company are revised downward and all else is equal, the price of a stock will

Name: If the expected earnings of a company are revised downward and all else is equal, the price of a stock will
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

When the expected earnings of a company are revised downward, it indicates that the company may not perform as well as previously anticipated, which leads to a decrease in demand for the stock. As a result, the price of the stock falls as investors sell their shares.

If the Expected Earnings of a Company Are Revised Downward