Aug 15
ECON Lesson #1
What is guidance in econ world?
Guidance is the managements forecast of what it expects the company to achieve.
For example, an institution previously said " we expect to produce 600,000 to 700,000 amount of an item"
then it says "actually now we are expecting 525,000 to 600,000" that is guidance cut and the opposite where the current expectations have increased is called guidance raise.
SO WHAT IS THE USE OF THIS TERM?
Investors use a company's guidance to form expectations about its future performance, which can influence their decisions to buy or sell the stock
