How does financial reporting affect investor decisions?

How does financial reporting affect investor decisions?

Financial reporting provides transparency and insights into a company's performance, helping investors make informed decisions.

What specific financial reports should investors pay attention to?

Investors should focus on the income statement, balance sheet, and cash flow statement as they provide key financial metrics.

Can you explain how earnings reports influence stock prices?

Earnings reports can significantly influence stock prices as they reveal a company's profitability and growth potential, impacting investor sentiment.

What are the risks of relying solely on financial reports?

Relying solely on financial reports can be risky as they may not capture qualitative factors like market conditions or management effectiveness.

How often are financial reports released?

Public companies typically release quarterly financial reports, with annual reports providing a comprehensive overview of the year.