request: how does a company’s stock rise/fall so quickly immediately after earnings?
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A stock sale is made by matching a person willing to sell for at least $x with a person who’s willing to buy for at most $y.
A lot of time, people already have buy orders in for a given price. (“Buy shares or IBM if it ever drops below $90”)
When the earnings report comes out, sometimes people are eager to sell their shares, so they’ll quickly get matched with these people without waiting buy offers.
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