I believe the level of earning base in the company can affect the Price of stock in a company. If the level is high then the price would be high as well and when its low, the price would be low too
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I quite agree with you on these.I was in a seminar some weeks back and one of the facilitator of the prorame told us how he sold his companys shares that was suppose to go for 5cent and at the end of the day,because of the personality involved,he sold it for over 35cent,and he made huge profit because of the status of the owner involved.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.
The stock in the market behaves like that of crypto. As you mentioned when there are many buyers then the price tends to increase and vice versa. The stock is owned by a corporation that is used in trading only for the purpose of trading. However, the holder of stock is qualified for dividends.There are many factors that cause the rise and fall of stock price anytime. Factors like introduction of new product into the market, release of new concerning economy of a country, when there are many buyers than sellers or many sellers than buyers all this factors and many that are not mentioned can cause it.
Factors that can affect stock prices
news releases on earnings and profits, and future estimated earnings.
announcement of dividends.
introduction of a new product or a product recall.
securing a new large contract.
employee layoffs.
anticipated takeover or merger.
a change of management.
accounting errors or scandals.
Based on my observation of the stock market here it is only the law of supply and demand that dictates the price. When there is a big bulk of selling then thr price of that particular stock goes down. When there is a big buyer then the price of that stock goes up. We have stocks of the biggest bank here that is performing excellently but the price of their stock is stagnating.I believe the level of earning base in the company can affect the Price of stock in a company. If the level is high then the price would be high as well and when its low, the price would be low too