Why results, dividends, splits, and buybacks move stocks.
| Concept | Explanation | |---|---| | Earnings report | Periodic disclosure of revenue, expenses, profit, cash flow, and other performance measures. | | Guidance | Management's outlook or expectations for future periods. | | Earnings surprise | Difference between reported results and market expectations. | | Dividend | Distribution of cash or other value to eligible shareholders. | | Buyback | Company repurchase of its own shares. | | Follow-on offering | Issuance of additional shares after the initial public offering. | | Merger or acquisition | Combination or purchase that can alter strategy, financing, risk, and ownership. |
Markets react to the difference between new information and prior expectations, not simply whether a number appears good or bad in isolation.