What makes the price of a stock go up or down?

Answer 1

the wind ...

for example, in Autumn when the trees' leaves fall down so does the stock market (except last fall, 2006)

Now seriously : the price of ANYTHING including stocks is determined by 2 factors alone -- supply and demand, period.

When the demand is greater than the supply, the price goes up, otherwise -- down.

Please note also that when we say "demand greater than supply," this does not mean more buyers than sellers or more stocks are bought than sold. It simply means the willingness to buy is stronger. At any moment during the market the amount of shares sold equals those bought, no more nor less, stock shares are neither created nor destroyed during the trade because every company has a constant (fixed) number of shares, they only change hands.

Answer 2

Investor perception about the risk of owning the stock. Different degrees of risk has compensating returns attached to it. So if I prefer certain stocks with certain risk I buy that and it's price move upwards. If I believe the stock I hold is hot to handle then I drop it and price falls.

Answer 3

The demand for the stock which is usually based on the company's earnings prospects. If the company makes more
money the stock will go up eventually.

Answer 4

Supply and Demand from the professionals and institutional investors. The more supply from selling from the big boys, the lower the price. The more buying demand, the higher the price until the big boys start selling. The smart investors are the ones who can spot this and jump on and off the train with the big boys and not get greedy.

Answer 5

1) Supply of the stock and demand for it.
2) Its estimated earnings per share.( Are they going up, or down??)
3) Its pipeline of new products.
4) Its position within its industry.(Leader?, Laggard?)
5) Interest rates, especially if the company relies on debt financing.
6) Misc problems( Product recalls, strikes, Accounting irregularities, Government investigations)
7) Merger and Acquisition activities. Buy-outs etc.

Answer 6

stable question. you are able to desire to assert grant and insist (this would come from derivatives), yet why is there particularly situations greater call for than grant and vice versa? worry & greed? Sentiment? If the respond grow to be generally happening it there would be no industry: shoppers & sellers make a industry. One explanation why shares bypass up is the anticipation of income develop. this may be justified via a nicely run business enterprise in a develop sector in a sturdy financial equipment. Or it might desire to be a severe tech business enterprise giving out extremely some hype.

Answer 7

Company's profit, growth, economics, inflation etc. all these are responsible for stock price variation

Answer 8

Quite simply, NEWS!! It comes in the form of earnings announcements, merger announcements, new product announcements, Fed Reserve Board comments, economic news, etc. There's an old saying, "Buy on rumor, sell on news".

Answer 9

earnings and heavy buying make it go up. heavy selling or price corrections also called shake outs. make it gap down. Low earnings also decrease it.

Answer 10

Supply and Demand.