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How the prices are decided. what i mean is that on stock market we can invest on the basis of company performance, but what is the criteria here.

2007-03-06 22:42:55 · 6 answers · asked by Ram's 1 in Business & Finance Investing

6 answers

Not just supply and demand but expected future supply and demand. Commodity trading is of contracts for future delivery so if you think there will be a shortage of something 6 months from now, you buy and vice versa.

There is similiarity in stocks. You look at past performance numbers as part of the decision to buy/sell but really, you're trying to figure out where the company is going and buying if the outlook is good and selling if the outlook is bad.

2007-03-06 23:53:24 · answer #1 · answered by huskie 4 · 0 0

most commidites like oil for example are traded by emotion. When an external trigger hits this market like say Iran the price of oil goes up. But at times the prices goes down.

2007-03-07 01:53:59 · answer #2 · answered by chuck h 5 · 0 0

i does no longer thoroughly lower price the advice given by technique of your 1st responder, regardless of the truth that i have self belief there are different more suitable urgent issues which could result the market. T-costs have accomplished ok relative to the options as have investments in overseas sovern debt. chinese and Indian markets were outperforming the united statesmarkets for about 3 years, perhaps more suitable. threat takers are at the moment recommending economic stocks. i wager it truly is why they are stated as threat takers.

2016-12-05 08:54:53 · answer #3 · answered by ? 4 · 0 0

Supply and demand.

2007-03-06 22:52:00 · answer #4 · answered by pepper 7 · 0 0

Supply and demand.

2007-03-06 22:48:24 · answer #5 · answered by minootoo 7 · 0 0

current/future supply and demand.

2007-03-07 05:49:10 · answer #6 · answered by Anonymous · 0 0

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