The Federal Reserve's Open Market Committee (FOMC) meets every six weeks or so, and after each meeting, they announce whether or not the key interest rate will go up. Of course, this will be big news for Wall St. investors (key interest rates impact how much everyone has to pay to borrow money, so the announcement both affects how much companies are paying to get loans and the overall economy in general...so, yeah, it's a big deal).
The trading on Fed announcement day is an example of the announcement effect, any time trading is likely to pick up due to an important pre-planned revelation. Other big announcements that might affect trading could be the unemployment rate, consumer confidence, Gross Domestic Product, inflation, or any other change to monetary policy.
Interest rate changes can also have an announcement effect on foreign exchange markets as an increase could raise the exchange rates. So you don’t want to miss a “Fed day” or any other big federal news. The announcement moves the markets like it's eating a jar of prunes.
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Finance: What are a 10K and 10Q?57 Views
finance a la shmoop what are 10K and 10Q filings well as the pros say 10Q
very much yeah you know we had to go there sorry well they're just filings a [Girl filing her fingernails]
different kind of filings legal filings papers or data
well the 10K is the annual report and the 10Q is the quarterly report their
note the Q in there yeah very clever naming their people well we have no idea
why the K is there like shouldn't it have been a 10A fling equals annual
anyway the filings contain the key elements that report to shareholders the [Man giving presentation to shareholders]
progress or lack thereof that the company has made in the period it's
reporting and these apply to public companies people privates don't
necessarily file... well the K the Q have to contain an updated income statement [Income statement, balance sheet and cash flow statement appear]
balance sheet and cash flow statement along with tons of notes on whatever
business metrics the company regularly reports the number of people made sick
by the lemonade the number a coal miner Barbies sold the number of Disney cruise
passengers infected with Legionnaires disease and so on and if you're the CEO [Person puking off the edge of a cruise ship]
or CFO of the company and you don't get your filings in on time well you'll be
doing a different kind of filing so yeah 10K, 10Q they're really important
don't ignore them...
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