Tuesday, February 20, 2007

Buy on the rumour, sell on the fact

How does company news influence returns and share prices?

How does company news influence returns and share prices? Well with everybody looking for an advantage over everybody else, rumours are bound to surface at any given time.You don't have to be plugged into an internet chat room or read the Sunday tabloids to pick up a spicy rumour.

The cliché of the share tip picked up at a dinner party or around a braai is real. It can happen anywhere. Investors need to be on their guard in determining what is rumour and what is fact. Under the disclosure requirements of the JSE, South African listed companies must inform the market as soon as practicable of any news likely to have a material effect on their share price.

Read full article at MoneyWeb.co.za

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