Deciding on Market Guidance Requires Careful Thought
Financial Executives International Daily offers public companies some advice on deciding whether and to what extent to give the market guidance about future operating results.
“Every public company must decide whether and to what extent to give the market guidance about future operating results. … There is no one-size-fits-all approach in this area. The only universal truths are: A public company should have a policy on guidance and the policy should be the subject of careful thought,” the daily reports.
The report offers 10 rules for giving good guidance, starting with Rule No. 1: Designate a Limited Number of Company Personnel to Communicate.
Read the story to see details on that rule and the nine other rules, along with suggestions to consider when drafting a guidance policy.
