This article is from the How to Start an Investment Program tutorial, author unknown.
Press Releases are public announcements by a company of notable current events that can affect the company's performance. Reasons for issuing press releases may include the acquisition of a competing business, introduction of a new product on the market, plant expansion, new management, or just about anything else the company wants to make public.
Press releases can be issued at any time and are a product of the public relations department, so the reader should remember that the information is not "independently audited." That said, the investor that intends to keep up with his/her stock should still pay close attention to the announcement and monitor the investment community's reaction. This is particularly important if the company is a small, highly volatile growth stock that can move radically up or down as a result.