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Of what significance are financial forecasts and financial projections?

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Answer:

Stock prices show significant movements after the release of information that shows earnings will be higher or lower than current expectations.

Forecasts and projections have a big role to play in the business. Financial analysts and investors look at the financial forecasts and projections before taking an investment call. A positive forecast or expectations of higher numbers result in added interest in the stock.

First answer by Enc of Biz and Finance. Last edit by Iiflflame India. Contributor trust: 0 [recommend contributor ]. Question popularity: 2 [recommend question].

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