abstract:A preannouncement occurs when a company or individual announces something either prior to the time that they do it or prior to the time that they would normally announce it. Preannouncements can take the form of a press release, filing a form with the government, a conference call, or a webcast.
Whenthe preannouncement ratio is high and expectationsare low, stocksrisean average of 2.1% during the newquarter'sfirstmonth, reacting positivelyto theearningsreports.
Lehman is slated to unveil on Wednesday morning in New York its own plans for self-preservation, following a preannouncement of its quarterly earnings.