In this discussion, you are to find a public company that missed expected earnings (earnings per share) in the earnings announcement since December 2018 (see Wall Street Journal available in the library). You then need to identify how much the stock price changed in the 24-48 hours after the announcement (price before - price after).-- prices can be found on the internet. Then multiply the stock price change by the number of common shares (see the financial statements in the 10-k) to determine the total change in the value of the market capitalization of the firm. Share these details in the post. Also comment on whether you think how management of the firm you selected might be motivated to misreport earnings given the way the market operates when these announcements are made.

Keep in mind as you do this that the SEC considered it necessary to issue a Staff Accounting Bulletin about the materiality and in that bulletin noted that sometimes a penny can be material.

Also note that this assignment illustrates how a market is efficient. The market get unexpected news (firm does not make anticipated earnings) and reacts to it.