Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.

Why does the share price tend to fall if a company's profits decrease, yet remain positive?
Aside from the market implications Victor and JB King mention, another possible reason is the dividends they pay. Usually, the dividends a company pays are dependent on the profit the company made. if a company makes less profit, the dividends turn out smaller. This might incite unrest among the shareholders, because this means that they get paid less dividends, which makes that share more likely to be sold, and thus for the price to fall.