I am doing a project on the intel corp stock INTC, and am supposed to look up articles and corrolate them to the rise and fall of the stock over a 3 month period. when i noticed that i have no idea why stocks rise or fall. Who decides what the price of a stock is? is it the demand for a stock? please help
2007-01-07 17:05:47 · 6 answers · asked by XitachiX 3 in Business & Finance ➔ Investing
The value of a stock comes from the earnings the company that issued it. The stock's price is determined by what people believe the stock will generate in the form of earnings/profits in the future. This is the price at which an equal number of people are willing to buy and sell the stock on the various stock exchanges where it is listed, like the New York Stock Exchange or the NASDAQ.
Market expectations of future profits are why stock prices fluctuate. If people believe that the future prospects of the stock have improved, they will pay more for it than before. Part of what drives people's perceptions is articles and new bulletins. If a company is getting lots of good press, people are likely to think it's future is brighter, and they will pay more for it. This is why many of the internet start-ups in the late 90's gained such huge stock valuations. The overall health of the company's industry also drives stock prices, as well as broader world news, such as geo-political tensions in the mid east in the case of oil stocks.
Some, if not most, of the market-moving information is not public or even directly related to a stock, so a search of news stories will not allow you to perfectly predict the stock's movements.
2007-01-07 17:46:03 · answer #1 · answered by William N 5 · 0⤊ 0⤋
Usually stock prices rise when a compay's business is increasing ... whether it be more people buying their products, or an increase in the price of their products, or building or buying more stores (factories, farms, buildings, whatever) and when investors see that a business is doing well ( or may start doing better) they buy more stocks in that company....increasing the demand, yes, sends the price up.
As far as your Intel project you can ( on yahoo/finance..or msn/ moneycentral) get a "quote" for the stock and somewhere in options should be a link for "headlines" or "news"....also on yahoo's quotes there is an option for " historical prices"...maybe if you check the dates on the articles comparing them to any sharp rise/fall in share price ..maybe you can tie something together.......did they get/lose a contract ? did the CFO get ousted ? is a competitor making cheaper chips ? are sales of a certain Apple or Dell unit going up/down? Anything to do with the SONY recall?
All I know is Intel has been great for Ireland... read that in Time Mag ( but it was more than three months ago, I think)
Good luck....get an "A"
2007-01-07 17:45:51 · answer #2 · answered by jebediabartlett 6 · 0⤊ 0⤋
Well the stock is business. Stocks raise because of the good commercials, good products, also personality of sale person.
The only way that stocks could falls is if they are opposite of what I just said and war or something happens.
2007-01-07 17:16:04 · answer #3 · answered by SV650s 4 · 0⤊ 0⤋
There are many reasons that stocks rise. The main reason is the healthy cashflow of the company.
2007-01-07 18:02:32 · answer #4 · answered by Dang 3 · 0⤊ 0⤋
a million. excessive yields that shoot way previous to inflation 2. rapid income in many circumstances. ex I invested in gold corp presently and have been given 20% return interior 3 weeks. 3. massive investors might desire to purchase up companies with the aid of employing inventory purchases.
2016-10-30 07:48:02 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Yes.
2007-01-07 19:53:01 · answer #6 · answered by Anonymous · 0⤊ 2⤋