Profit warning

The correction of a forecast of earnings figures in a negative direction (a public announcement made by a company to shareholders and others, warning that profits for a stated period will be much lower than had been anticipated). The supervisory authorities require such warnings in the course of the ad hoc reporting obligation; they also control manipulative reports. However, such messages are on daily occurrence, especially in blogs, Internet forums and networks such as Twitter, and can hardly be ruled out. – Moreover, a company can gain a considerable advantage for various reasons if, in the course of a profit warning, shareholders sell their shares and/or bondholders throw the securities onto the market. The targeted disseminating of horrific news, purposefully floating of shocking reports, is therefore also rightly classified as a means of business policy. – See Amber Light, ad hoc announcement, analyst, starvation, backup, daimonion, decision usefulness, frontrunning, secret tip, rumor scattering, earnings surprises, credit jeopardy, crystallization, price manipulation, zero distribution, Pairoff, publicity, situational, redlining, scalping, publication, immediate, circumstances, valuation-sensitive, waste watcher.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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