why do stock prices go up and down?

Question

I know its because of supply and demand
What I want to know is the reasons for this supply and demand
For instance a stock price go up because the company got a huge contract to produce something
It goes down if their competitor gets the contract
Etc, etc
Can you name other reasons why a stock price will rise or fall?
Do you know a website that covers this?
Thank you

Answer 1

The reasons why a stock might increase or decrease in price as as varied as the number of people and institutions currently buy and selling the stock.

there can be technical reasons such as the stock is currently over bought or over sold. That is it is due for a correction in the stock price based on technical inditications.

there can be overall economic reasons such as the Fed has recently raised or lowered interest rates or unemployment statistics have increased or decreased or GNP has increased or decreased or the housing market has collapsed or the president has decided to invade another country or oil prices have increased or decreased.

there can be company specific reasons for the price to increase or decrease such as an increase or decrease in earnings, same store sales, an increase or decrease in dividends, revelations that the CEO has been back dating his stock options or cooking the books or bribed the board of directors into giving him a healthy increase in salary or just awarded a monsterous tax break by congress.

Answer 2

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Answer 3

A lot of times it goes up or down because of market speculations. It has nothing to do with company. People look at certain indicators an think it should go up they start to buy. When they start to push the price up others see its going up the want to ride the trend and jumping in pushing the price even higher. Then when indicators are showing weakness coming they start to sell pushing the price down then they riding a downtrend :) You can read about this indicators and more here http://ggfinances.com/education/ .
Now days less people pay attention on fundamental analysis and more technical.

Answer 4

You are right. It is soley on supply and demand. When a company scores big, then people want the added potential that it can go up and make them money. when a company gets sued, or is losing market share, then it goes down. And people dont want to buy it so there fore it goes down. Its all about the supply and demand. Thats all there is too it....But, if we hear rumors, then a stock can go down because people are afrad to lose money..so, in essence...demand goes down....

Answer 5

Stocks are "valued" based on future expectations. A stock will go up because it is viewed to be under priced based on it's future value and the reverse.

The assessed future value can be determined by a lot of things (market environment, competitive stance, etc.).

Answer 6

stock prices

Answer 7

There is a pretty good explanation of stock price factors here:

http://www.howthemarketworks.com/prices.htm

It talks about both the business factors and the human psychological factors.

Hope that helps!

Answer 8

Because business profits go up and down, like a roller coaster.

Answer 9

This is a starred question, you have my answers there, please refer to them. If you don't find it till now, please refer to my answers some of the recent ones has the same answer given for another person who asked the question this afternoon.