We know its a matter of more sellers than buyers on the down side and more buyers than sellers on the up side. But answer this:
Why such sudden and big moves on little or no fundamental market changes?
2006-07-07 03:07:40 · 4 answers · asked by equidata 1 in Business & Finance ➔ Investing
Buying and selling of stocks, because of people jumping out or into a certain sector with hot growth
2006-07-07 03:11:12 · answer #1 · answered by Tim 4 · 1⤊ 0⤋
It comes from the volume of buy and sell trades that go on during the period of the day when the stock market is open. Because our market has a correlation to foreign markets as well our prices are affected as well by how the foreign markets do while we sleep at night i.e. China, Japan, India, England, Germany, France. Investor sentiment and new market information initiate buying and selling decisions on the part of both institutions and individuals who then buy and sell stock at high/low prices to gain profits by selling or buying short/long.
2006-07-07 04:45:02 · answer #2 · answered by hager36 2 · 0⤊ 0⤋
Read "A Random Walk Down Wall Street" by Buton Malkiel
2006-07-07 03:22:47 · answer #3 · answered by insuranceguytx 5 · 0⤊ 0⤋
Any type of news and events can effect the stock market. For example, Wall Street pays attention to the Fed to see if they will increase or decrease rates.
2006-07-07 03:18:27 · answer #4 · answered by H Michelle 1 · 0⤊ 0⤋