why are earnings released...

Discussion in 'Trading' started by Optional, Mar 14, 2012.

  1. An hour before the market opens
    After the market closes?

    Why not release the news right at the open?

    Just wondering if anyone had a real tangible reason for this.
  2. rmorse

    rmorse ET Sponsor

    To give the public time to read and understand the earnings, rather than jump at the first sentence.
  3. Why not let them jump at the first sentence?
  4. rmorse

    rmorse ET Sponsor

    I can't tell if you're joking.
  5. No I'm serious. I understand its the culture to release earnings when they do. But what would be WRONG with releasing them at the market open?
  6. There's no benefit to creating artificial volatility in the market.

    How would you like it if the stock you were long suddenly fell 10% because they announced earnings at 2:30 and you had to cut because you couldn't see the first headline. And then the second headline explained the first and the stock was back to unchanged.

    We don't want flash crashes everyday.
  7. rmorse

    rmorse ET Sponsor

    As traders, we like chaos. The companies providing information to their share holders and the public do not. My companies prefer not only to announce after the close, but also have their conference call before the market opens, so every shareholder and potential share holder has the same information and has time to understand it.