Forward Looking

AAA

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.

INVESTOPEDIA EXPLAINS '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. Indicator

    Indicators are statistics used to measure current conditions ...
  2. Earnings Call

    A conference call between the management of a public company, ...
  3. Earnings Announcement

    An official public statement of a company's profitability for ...
  4. Pro-Forma Forecast

    A financial forecast based on pro-forma income statements, balance ...
  5. Earnings Estimate

    An analyst's estimate for a company's future quarterly or annual ...
  6. Earnings

    The amount of profit that a company produces during a specific ...
RELATED FAQS
  1. Is there a difference between financial spread betting and arbitrage?

    Financial spread betting is a type of speculation that involves a highly leveraged derivative product, whereas arbitrage ... Read Full Answer >>
  2. How do I place an order to buy or sell shares?

    It is easy to get started buying and selling stocks, especially with the advancements in online trading since the turn of ... Read Full Answer >>
  3. What does a high turnover ratio signify for an investment fund?

    If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>
  4. How does a forward contract differ from a call option?

    Forward contracts and call options are different financial instruments that allow two parties to purchase or sell assets ... Read Full Answer >>
  5. What is the difference between passive and active asset management?

    Asset management utilizes two main investment strategies that can be used to generate returns: active asset management and ... Read Full Answer >>
  6. What is the relationship between current yield and yield to maturity (YTM)?

    Both the current yield and yield to maturity (YTM) formulas are methods of calculating the yield of a bond. However, these ... Read Full Answer >>
Related Articles
  1. Markets

    The 5 Types Of Earnings Per Share

    A look at the five varieties of EPS and what each represents can help an investor determine whether a company is a good value, or not.
  2. Economics

    Earnings Guidance: Can It Accurately Predict The Future?

    Explore the controversies surrounding companies commenting on their forward-looking expectations.
  3. Fundamental Analysis

    Understanding Pro-Forma Earnings

    These figures can either shed light on a company's performance or skew it. Find out why.
  4. Investing Basics

    The Flow Of Company Information

    Learn how to gather all the pieces before you start to put together your puzzle.
  5. Professionals

    Conference Call Basics

    These group calls offer investors a chance to hear management respond to analysts' hard-hitting questions.
  6. Markets

    Whisper Numbers: Should You Listen?

    These unofficial forecasts hold the potential for insider insight - and investment risk.
  7. Options & Futures

    Core Earnings Strip Away "Creative" Accounting

    This metric is an attempt to counteract creative accounting, but it poses its own set of challenges.
  8. Fundamental Analysis

    Conference Calls: Press 1 For Investment Insight

    These calls can be an investor's most direct line to information about a company's operations.
  9. Investing

    The Number One Reason Why Most Traders Fail

    We show you the simple tools, availble to everyone, to succeed as an active trader: education, experience, charts, vision, and risk management systems.
  10. Investing Basics

    What Does It Mean When an Investment Outperforms?

    Stock analysts use the term “outperform” to rate a stock.

You May Also Like

Hot Definitions
  1. Hedging Transaction

    A type of transaction that limits investment risk with the use of derivatives, such as options and futures contracts. Hedging ...
  2. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the ...
  3. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  4. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  5. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  6. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!