Forward Looking

DEFINITION of 'Forward Looking'

A business slang term for predictions about future business conditions. Stockholders often ask company management about what they believe will happen in future time periods. While it is clear to everyone that no one can predict the future, management is often in the best position to see new trends that may be occurring and to speak about what the company has planned.

BREAKING DOWN 'Forward Looking'

Despite the implicit understanding that certain statements are speculation, the SEC requires public companies to include a disclaimer on all management discussions with investors in order to emphasize this point. When properly emphasized, stockholders generally may not take legal action against company management for forward looking statements which proved to be inaccurate. In the U.S., the Private Securities Litigation Reform Act of 1995 provides certain safe harbor provisions against fraud claims dealing with forward looking statements.

RELATED TERMS
  1. Expanded Accounting Equation

    The expanded accounting equation is derived from the accounting ...
  2. Managed Futures Account

    An account that is like a mutual fund, except that positions ...
  3. Forwardation

    A term used in pricing futures contracts. Forwardation is a ...
  4. Shareholder

    Any person, company or other institution that owns at least one ...
  5. Capital Stock Insurance Companies

    A capital stock insurance company is a company that gets its ...
  6. Predictive Analytics

    The use of statistics and modeling to determine future performance ...
Related Articles
  1. Investing

    What Is Stockholders' Equity?

    Stockholders’ equity represents the equity that shareholders own in a company.
  2. Trading

    Profit Without Predicting The Market

    Traders who try to predict the future can actually harm their trading options.
  3. Trading

    Evaluating A Company's Management

    Financial statements don't tell you everything about a company's health. Investigate the management behind the numbers!
  4. Markets

    Understanding Forecasting

    Forecasting is the use of historical data to predict the future.
  5. Markets

    The Flow Of Company Information

    Learn how to gather all the pieces before you start to put together your puzzle.
  6. Trading

    9 Misconceptions About Managed Futures

    Managed futures are not all they're worked up to be. Learn why they are not a good option for investors.
  7. Investing

    Top 9 Questions Investors Should Ask Management

    Find out how to get the answers you want without getting the company line.
  8. Investing

    What are Financial Statements?

    Financial statements are a picture of a company’s financial health for a given period of time at a given point in time. The statements provide a collection of data about a company’s financial ...
  9. Trading

    Understanding Trend Analysis

    Trend analysis is the use of past performance to predict future price movement of a security.
  10. Trading

    Advantages Of Trading Futures Over Stocks (APPL)

    We look at the top eight advantages of trading futures over stocks.
RELATED FAQS
  1. Does stockholders equity accurately reflect a company's worth?

    Learn whether stockholders' equity accurately reflects a company's worth. Stockholders' equity is found by taking the difference ... Read Answer >>
  2. What is the impact of retained earnings on stockholders equity?

    Learn about the relationship between retained earnings and stockholders' equity for a corporation and how it is reported ... Read Answer >>
  3. What does total stockholders equity represent?

    Understand the equation for total stockholders' equity and what it represents. Learn the components of stockholders' equity ... Read Answer >>
  4. What are managed futures?

    Managed futures are futures positions entered into by professional money managers, known as commodity trading advisors, on ... Read Answer >>
  5. What are the pros and cons of owning preferred stock instead of common stock?

    Understand and explore the advantages and disadvantages of owning preferred stock as opposed to owning common stock shares ... Read Answer >>
  6. How do marketable securities impact a company's financial statements?

    Understand how the various components of the financial statements are impacted by investments in marketable securities owned ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center