Disclosures

Corporate disclosures are intended to inform investors and regulatory authorities on developments in the firm or the industry.

- 

These can be routine announcements of movements at the board or even a sale of a small number of shares of the company by officers or directors.

Disclosures are not limited to company announcements.

Economic planners, like the BSP or NEDA, issue statements on possible changes in the macroeconomic landscape. These statements are parsed by investment analysts especially when signaling a shift in monetary or fiscal policy. A reduction of interest rates or the announcement of inflation numbers can affect investor sentiment on the economy.

“Signaling” policy is a public form of communication to give the market some direction on interest rate movements, inflation, GDP growth forecasts, exchange rates or unemployment levels. These moves can impact certain companies more than others.

Companies meeting with analysts can give “guidance” numbers for the rest of the year. These are directions based on actual performance. Guidance numbers are usually announced at investors’ briefings. These are studied by analysts and used as pegs for evaluating actual performance. They are not intended to hype up the stock.