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Explain why share prices might fall if the reported profits

Question - Assume the following statement appears in the media:

Profit forecasts have already been factored into share prices. But if companies report profits significantly below forecasts, share prices will fall.

Explain why share prices might fall if the reported profits are significantly below what has been forecasted.

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Accounting Basics: Explain why share prices might fall if the reported profits

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Accounting Basics: Explain why share prices might fall if the reported profits

Reference No:- TGS02865866

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