• helenslunch@feddit.nl
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    2 months ago

    Incorrect. It’s defined by profits and losses, which the losses typically precede drop in stock values.

    • sugar_in_your_tea@sh.itjust.works
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      2 months ago

      I think the opposite is true. Stock values factor in expected future earnings, so if the market seems to be shifting, the stock price will generally drop before the disappointing earnings report comes in.