What Happens When the Actual Profit Reported Exceed the Expected

question 53

Multiple Choice

What happens when the actual profit reported exceed the expected profit for a company?

• A) It causes an increase in the share price.
• B) It causes a decrease in the share price.
• C) It is impossible to understand the changes in market price of share.
• D) There is no share price reaction because forecasts of profit almost never reflect actual results.

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Definitions:

Inconsistent

Showing variance and lack of uniformity or stability in thoughts, actions, or quality over time.

Unsystematic

Lacking a plan, method, or coherence, often referring to information or actions that are disorganized or random.

Rigid

Describes an inability or unwillingness to adapt or change one's thoughts, behaviors, or attitudes despite new information or changing circumstances.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning techniques.