What makes the numbers of a stock price in the stockmarket change numbers?

Question

I know when companies do well the stock increases, but what makes the transformation from increase of revenue to a stock going up?

Answer 1

It's supply and demand. If a company is reporting good quarterly figures and upward trends, people are willing to buy the stocks at a higher price, so brokers will start trading them at a higher price. If a company is going in the wrong direction and demand goes down, brokers and traders will need to sell the stocks at a cheap price or else no one will buy.

Answer 2

The companies stock price changes with the value of the company. If a company is growing and has a product/service the community wants the price will increase. Things like management, profits, assets, ....many things effect the Stock's price. The demand has a large factor.

Answer 3

Perception. The idea that the stock is worth more than it was. Lots of companies grow without it translating directly into a higher stock price. It is sometimes mystifying to watch. The same is true in reverse - a popular company's stock may stay high when it is no longer doing so well. The day to day fluctuations in the stock prices, in lieu of news or a report from or about the company are essentially random.

Answer 4

it's (mostly) an open market on the shares of the company. people hear good news and buy, but the people who have stock heard the same news so they want a higher price. same thing in reverse with bad news. add to that everybody runs up and down based on other news (the economy, war, etc.).

I say "mostly" since there are people who are paid to keep the market orderly (SEC will shut down trading if too crazy, some stocks have "specialists" who facilitate a market in the stock by purchasing and selling shares on a little-traded stock to keep it active

Answer 5

THe law of supply and demand.. More buyers than sellers=higher price ...more sellers= lower prices

Answer 6

Supply and Demand.