Cash flow lessons help individual investors look beyond reported earnings

Why are individual investors, commonly known as "retail investors," prone to losing money in the stock market? A Lingnan University joint study of more than 4,600 Chinese and U.S. stocks finds that investors are less likely to buy stocks blindly when they understand the difference between a company's "reported earnings" and its "actual cash flows."

Read it at Phys.org ↗

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