Why Are Earnings Announcements So Important to Traders and Investors?

This Element is an excerpt from Trading on Corporate Earnings News: Profiting from Targeted, Short-Term Options Positions (9780137084920) by John Shon, Ph.D., and Ping Zhou, Ph.D. Available in print and digital formats.

Understand those crucial quarterly earning announcements: how they work, and how they impact stock prices.

Quarterly earnings announcement are the most salient, most anticipate...