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 is an 8k?3 Views
Finance a la shmoop... what is an 8K... K filing and no it's not a TV pipe size [Person watching Orange is the New Black]
nor a race it's just a filing a legal filing in a public company you have to
file an 8K when anything significant happens and you have to file it within
four days of when the event occurred so what's significant well that's things
like discovery of fraud or of a sexual harassment lawsuit that was filed or a [Examples of reasons for filing an 8K]
CEO resigning or a big company layoff or a big move out of California for half
the employees to save taxes or if the company gets quired by Kim Jung-Un
enterprises.....That's an 8k you file it
when something happens yeah not like this guy don't need to file when the [Man painting a lobby pink]
lobby is painted no matter what the new color does to anger visitors...
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