Why does stock prices rise and fall?

Answer 1

PURELY DEMAND & SUPPLY.

For instance there are 100 shares floated in the open market and 30 are traded everyday. Suddenly some one discovered the company is going to milch in profits due to certain development. He jumps in demands 50 shares. unfortunately only 30 is traded out of 50 he gets 30 but where else he get is 20?

The demand rises and some one frome the total 100 meet his 20 there is only 50 shares available but still not come to trade.

Again some more persons find the shares still attractive and demands 100 shares what happens, the yet to be traded 50 is targeted and the price rises. But beyond that 50 there is no physical delivery shares available. As long as such demand is there the stock continues to rise.


That is how stocks of Mcdowell, Beml etc are piercing the roof and flying high (last year)

Answer 2

It goes up when people are buying thinking the company is going to be doing well, paying great dividends, etc. Those that think it has more upside than present are willing to pay more to get the shares.

Those that own the stock and think they can sell it and make a good profit from when they bought it, will sell it to those willing to pay that higher price.

If the owners think the company is going to have trouble, make less money, pay less dividends, etc., they are will to sell out so that they don't lose any money. If the people they are selling to think that they can buy it for less, they will offer less and hope that the company will turn around which will then give them a profit.

So it goes down when the buyers think it's worth less than those selling it and it goes up when the buyers think it's worth more than those selling it do.

Sometimes it goes up or down based on volatile world events. For example, if a major hurricane is going to hit the major gas platforms in the Gulf of Mexico, the oil company stocks may go down because they will be severely impacted by the shutdown and possible repair problems. Oil company stocks could go up if the OPEC producers say they will curtail oil production to drive oil prices up as this would result in higher profits for the oil companies.

Answer 3

Stock price rise when the perceived aggreate value of the market participants(investors and speculators) increase. It falls when the opposite is expected.

Different participants has different behavior and this is a factor in the stock price movements and not just mere financial statements analysis.

Answer 4

In international market crude oil prices have gone down. There are restriction on prices at domestic level.. Prices are decided by Government. There is a price Control. Naturally, expenses are more so not profitable. Demand and supply of stocks, profitability of the company, promotors' integrity, government policies, operators, international trends etc. are the factors in deciding share prices.

Answer 5

Stock market is like a gambling where some gains and most ultimately looses. Rise and fall is must in the game of gambling.

Answer 6

peoples' interest in particular things fluctuates so companies' stock values also fluctuate. for example, a company comes out with a new product that everyone wants, their stock will go up, then nobody likes the new product and the company loses money, their stock prices go down.

Answer 7

Schizophrenic traders

Answer 8

Due to fundamentals and speculations.

Answer 9

Because investors, for whatever reasons they can muster, believe that they will...