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Yep, and if you issue the wrong number, your company is legally obligated to issue a correction, done in an 8-K usually I believe. And this is very much frowned
by yellow_lead 5y ago
Yep, and if you issue the wrong number, your company is legally obligated to issue a correction, done in an 8-K usually I believe. And this is very much frowned upon by investors (not the correction, but making the mistake in the first place).
- TeMPOraL 5y agoHow does investors dissatisfaction with a company making such mistake manifest itself? I assume they won't divest just for the sake of punishing the board.
- spdionis 5y agoFuture investors would avoid the company?
- filoleg 5y agoQuite a few of board members are the investors, if I understand it correctly. As for how their dissatisfaction could manifest, they could vote the CEO out and put someone else in that position who will revert that level openness instantly.
- yellow_lead 5y agoThey may not simply for punishment but because they lost trust in the company's ability to accurately report financials (depends on discrepancy in financials, # of misreports, etc)