Profit warning

Profit warning is a term from the language environment of the stock market.

Each corporation forecast at the beginning of a fiscal year or a quarter of the desired business results. If the management information known to suggest an amendment to this expectation, the revised expectation is published by the publication of an Ad hoc announcement by the company. The announcement of a reduction of the gain (or increasing the loss ) is referred to as " profit warning ", which is an increase of profit as an " expectation of profit ". According to § 15 German Securities Trading Act (WpHG) the profit warning is a mandatory announcement and shall be made immediately to prevent insider trading. Often after a profit warning triggered shareholders from their shares, so that the prices fall.

Unwortdiskussion

The word " profit warning " was on the list for 2001 word of the year (elected but was " holy warriors "). According to the jury, there is a " materially inaccurate term used by shareholders, who warns than expected before lower profits ." It would have been factually possible to find more suitable expressions such as " reduction in profits warning" or if the company slipped into the red zone, "Loss Warning".

In the same year profit warning was elected Börsenunwort of the year and 2008 the Austrian word of the year.

" This word gained immense presence and an increased frequency of use due to the global economic difficulties. Moreover, it is interesting from a linguistic point of view, since it apparently before profits warning, but actually thinks losses or reduced profits. It is so a word that obscures the true facts to the highest degree and so is available in both content and in its use for those obscure things going on currently in the financial and banking world in itself. "