Management at a public company is under a great deal of pressure to meet quarterly earnings forecasts, because falling slightly short can cause a significant drop in the stock price. (mastersinvest.com)
Big drops in stock prices also tend to be followed by significant earnings increases and significant stock price increases are followed by slower rates of increase or declines in earnings. (novelinvestor.com)
There is a difference, however, between a market correction — a 10 percent drop in stock prices — and a major sequence of returns risk. (dallasnews.com)