Forward-looking statement

A forward-looking statement is when someone tries to predict what will happen in the future. Just like when you try to guess how many cookies you'll get for your birthday, people in charge of companies make guesses about how they think the company will do in the future. They do this by looking at how things went in the past and by thinking about any big changes that might happen in the world that could affect the company. Sometimes they make these guesses public and say things like “we predict we will make a lot of money next year” or “we think things might be tough for us soon”. These guesses or predictions are called forward-looking statements. It’s important to remember that forward-looking statements are not always accurate because the future is really hard to predict!