Timeline for Why is it that stock prices for a company seem to go up after a layoff?
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Oct 19, 2014 at 21:38 | history | edited | Jaydles | CC BY-SA 3.0 |
added 33 characters in body
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Oct 19, 2014 at 21:34 | comment | added | Jaydles | @thinlyveiledquestionmark basically yes - the key is that when layoffs happen, the market's view before then is almost always "something is broken - I hope they are working on some way to fix it." The layoffs communicate "this will fix it". That may be right or wrong, but "they have a NEW plan" is more comforting than "they don't seem to be changing the things that got them into third mess." | |
Oct 19, 2014 at 21:30 | comment | added | yuritsuki | Okay I think I understand now. basically, the public's perception of an announced layoff is completely off, because layoffs actually indicate change in the company, rather than something bad that is happening. Is this right? | |
Oct 19, 2014 at 17:44 | comment | added | Jaydles | @thinlyveiledquestionmark thanks - I made an edit that (hopefully?) clarifies. See if that does it for you? | |
Oct 19, 2014 at 17:43 | history | edited | Jaydles | CC BY-SA 3.0 |
edited last line to clarify thanks to a comment.
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Oct 19, 2014 at 17:37 | comment | added | yuritsuki | I don't understand your last point. What do you mean by "public view of layoffs are "company has issues, will not resolve them", but then say "layoffs mean the previous statement can't be true." | |
Oct 19, 2014 at 16:20 | history | answered | Jaydles | CC BY-SA 3.0 |