We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

In Finance, what is an Announcement Date?

Mary McMahon
By
Updated: May 17, 2024
Views: 5,177
Share

An announcement date is a date when important information about a company is made public. Announcement dates can also include dates of more general releases of financial information, such as interest rate announcements from the Fed in the United States. Individuals and groups conducting event studies, studies which examine the impact of public announcements on values, pay close attention to announcement dates.

One special type of an announcement date is a declaration date, in which company representatives announce an upcoming dividend. On a declaration date, the company incurs liability, because it is committing to pay out a dividend in the near future. This results in an adjustment to the books to reflect the upcoming payout. Other announcements which may occur on an announcement date can include information about an upcoming stock split, a change in management, or the results of merger or sale negotiations.

An announcement date usually has some sort of impact on the company's value, even if the impact is not necessarily immediately related to the announcement, because changes tend to be make investors respond. The value may go up if people think that the announcement is good for the company, or down if people are concerned that the announcement bodes ill for the company's future. Being able to react quickly on an announcement day is critical for people who work in the financial industry.

People who use knowledge about information which will be released on an announcement date to make decisions about buying and selling securities can be accused of insider trading. The argument goes that average investors cannot act on this information until it is announced, so investors with knowledge about information which hasn't been released are at an unfair advantage. For this reason, people in a position to have such knowledge, such as CEOs, may be required to register trades and sales so that they can demonstrate that they are not using insider knowledge.

Certain types of announcement dates may be scheduled or announced beforehand so that people are aware of the fact that an important release of information is upcoming. Some occur at regularly set intervals; interest rate changes, for example, happen at the same time, and thus can be anticipated by investors and other people who may have an interest in upcoming interest rate adjustments. It is not uncommon for markets to fluctuate in the hours and minutes leading up to such announcements as investors jockey for positions.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a WiseGeek researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Editors' Picks

Discussion Comments
Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

Learn more
Share
https://www.wisegeek.net/in-finance-what-is-an-announcement-date.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.