Investor's emphasis on earnings ________.

Question

Quizplus · Accepted Answer

While investors' focus on earnings can incentivize companies to be more profitable, it can also lead to miscommunication and a narrow focus on short-term financial results rather than long-term growth and sustainability. It is not necessarily true that even uneducated people can fully understand earnings, and it is still important for investors to have a basic understanding of accounting and financial statements in order to make informed decisions.

Investor's Emphasis on Earnings ________