Signal

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Signal

To convey information through a firm's actions. The more costly it is to provide a signal, the more credibility it has. For example, to call a press conference and tell everyone that the firm's prospects have improved is less effective than saying the same thing and raising the dividend.

Signal

An indication of a company's health and/or actions. Signaling a certain state or action may cause a company's stock to rise or fall in price. Generally speaking, the more money a signal costs a company to make, the stronger the signal is thought to be. For example, a company may make a statement indicating financial distress, but reducing its dividends is thought to be a stronger signal.

signal

To provide information to. For example, an unexpected dividend increase may signal investors that a firm's directors are more optimistic about future profits than previously thought. Likewise, the announcement of a new equity issue may signal investors that directors consider a firm's stock to be fully valued.
References in periodicals archive ?
Where any train is operated at a speed over 40 mph, a roadway block signal system shall be installed or a manual block system shall be placed permanently in effect.
The invention relates generally to traffic signal systems for motor vehicle traffic controls at road intersections and other crossings that include at least one stop/go light signal, minimally having a red light and a green light, but typically having a red, a yellow (or amber or orange), and a green light.
Provide effective and efficient maintenance services for the traffic signal systems throughout the District of Columbia.