Question
Investment analysts at a leading investment bank reported in October 2002 that the revenues of Reuters had slumped in the third quarter of its financial
Investment analysts at a leading investment bank reported in October 2002 that the revenues of Reuters had slumped in the third quarter of its financial year, that recovery was still some way off and that the company would be reporting poor third quarter results in the following week. The company had already launched a restructuring plan, involving a large cut in the workforce to restore profit margins on sales of its information terminals.
(Reported New York Times, November 2002)
Required:
Discuss and explain how do you think the analysts' report might affect the relationship between the company and its investors?
Investment analysts at a leading investment bank reported in October 2002 that the revenues of Reuters had slumped in the third quarter of its financial year, that recovery was still some way off and that the company would be reporting poor third quarter results in the following week. The company had already launched a restructuring plan, involving a large cut in the workforce to restore profit margins on sales of its information terminals.
(Reported New York Times, November 2002)
Required:
Discuss and explain how do you think the analysts' report might affect the relationship between the company and its investors?
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