Smart Finance

Term

Guidance

The forecast a company publishes about its own upcoming results (sales, earnings per share, margins), usually as a range. It is the company's word, not a fact: it gets revised, and the market reacts as much to the change as to the number.

In pesos: If a company says it will sell between $100 and $110 million pesos this year and later cuts that to between $90 and $95 million, its shares can fall on the day of the cut even if the quarter itself went well.

Where to go deeper

2/4 6 min Read What you actually buy when you buy a share A share is a piece of a company, not a number on a screen. Where its value comes from, why the price moves, what a dividend is, and why it is not a lottery ticket.

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Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.