• helenslunch@feddit.nl
    link
    fedilink
    English
    arrow-up
    1
    ·
    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
      link
      fedilink
      English
      arrow-up
      1
      ·
      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.