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Iceberg, this is one view. However, announcing after market somewhat levels the playing field for the individual investor too. The individual who doesn't monitor the market every minute can get the news, think about buying or selling, then make the decision the next day. In fact even large institutional holders must do this too, So the next morning, everyone is in the same boat. Of course the inevitable gap down, reflects the new true value of the stock, so even though it feels painful, even if you by some lucky chance got the warning during market hours realtime, the wave of selling that would occur would like drive the price down so far so fast that you couldn't sell anyway. I think many more stockholders (large and small) end up holding, instead of selling when they have a chance to digest the news. |
