There are a ton of factors that can affect the demand for a stock. Strong earnings, dividend increases, change in management (if the current management is underperforming), business cycles (industrial companies like Caterpillar or DuPont do better when the economy is booming with strong GDP growth, and food and drug companies like Pepsi and Pfizer do better when the economy is in a slowdown because people are going to keep drinking pepsi and taking their medicine regardless of the health of the economy), bond yields (if bond yields rise to levels that might entice investors to put money into bonds instead of stocks then the demand for stocks falls), hype also can play a part in the demand for stocks as we saw with tech-stocks in the late 1990s. There are many other reasons that demand for a stock can rise, but these are the most common ones. Supply can also change for a stock which affects the price. If a company issues more stock, then the supply increases and the stock price will decline (it will also decline because extra issuings of stock often mean that a company is in trouble. On the flip side, if a company buys back stock (you'll often hear about "stock buy backs") then the supply falls which raises the price.
2006-11-07 02:50:09
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answer #1
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answered by jthomas1279 2
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recent company news, company prognosis near/long term, volume, price, dividend...the point is, just about anything can effect demand or lack of demand for a stock.
2006-11-07 02:17:21
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answer #2
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answered by henry9tx8 2
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Availability, Price and Competition.
2006-11-07 00:47:40
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answer #3
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answered by Anonymous
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