Just as it is with the foreign exchange markets, so it is in the stock markets. Factors like war for instance can affect the stock of that country very well
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You are right with the law of supply and demand but stocks are usually based on the performance of the company. Stocks are shares of ownership. When the company earns a big profit for this year then there is a dividend for the owners - this includes the holder of stocks.There are alot of factors the are responsible for the rise and fall of stock. as in business the forces of demand and supply at a given time, the increasing policies of the state and then it importance as to the needs of the people or ther users.
I'm really not sure tho,but I think if there is too much demand in the market it will affect the prices of that stock. So if there is less demand as well it will affect it but in a positive way tho.As a newcomer to the world of stocks, supply and demand will affect prices, but there are several basic factors that affect prices, both internal and external, so what are the factors that cause the rise and fall of stock prices.
You are half right with your observation because when the company experiences high profit then the stock prices tend to go up. However, there is also the law of supply and demand that when big company owners start to sell their stocks the tendency of the price is to slide down and vice versa.I am not a stcok market expert, however, I believe that if the product of a company is doing well in the market, then the price of shares might increase. But if the product is not doing well, then the prices might fall. This is my theory.
You are half right with your observation because when the company experiences high profit then the stock prices tend to go up. However, there is also the law of supply and demand that when big company owners start to sell their stocks the tendency of the price is to slide down and vice versa.
I think the factor is the demand and supply. The more there is demand for a particular company's stock the higher the price will become but when there is too many supply beyond what is demanded in the market then the price will go down. This is the principle of business.As a newcomer to the world of stocks, supply and demand will affect prices, but there are several basic factors that affect prices, both internal and external, so what are the factors that cause the rise and fall of stock prices.
I think the performance of the company at the end of year is not much of a factor. What really affects the market price of stocks is the law of supply and demand. When a big stockholder sells all his shares that is not a good sign so the other stock holders would also sell that will cause the price to drop.When a prospective investor buy into the the shares of the business,it would cause the value of the shares to increase.And also the performance of the stock at the end of a financial yera with decleared dividends cold make the stock to rise.
Yeah I also share this view of yours on the factors that can affect stocks. The political instability is one of such factors. So also is war. These factors will have a negative impact on stocksA lot of factors can cause the rise and fall of stocks bit locally and internationally as well. Factors like political instability and wars and famine and his lot more can go a long way in affecting stocks