what causes a stock price of a quoted company to remain or drop even when traded?

Answer 1

Rather than searching what causes stock price to remain or drop, it is better to understand human psychology. in stock market, greed and fear drive stock prices ups and downs. though there are economic indicators (like inflation, interest rate, corporate earnings etc.) that able to explain on certain price movement, others still and will remain hidden. nobody in the world can explain exactly what happen in the stock market and what causes the stock price fluctuations.

that is why, technical analysis came into picture. though it is very subjective topic, but certain human behaviors will remain the same; greed and fear. the price movement somehow able to reveal some pattern that reflect to human 'greed and fear'. given an example, they buy when they 'feel' the stock is affordable and sell when they 'thought' the stock is already over-valued; with something in mind to buyback when the price drops later.

if you are serious about trading stock, these are the topic that you need to go deeper. as each stock has different 'type of player', its pattern will be different to another stocks. stock charting software able to help you to do the analysis, but to me nothing beat human intelligent; which is why it still need your 'human judgement'.

however, if you are incline to invest for long-term, daily price fluctuations is the last thing you will ever to consider. instead of betting in 'human behavior', you are investing in profitable businesses. however, selecting profitable businesses is crucial than if stock traders, selecting stock with 'high beta' is more than important.

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Answer 2

Hello There,

A quoted company stock price can seem like a "yo yo" from one days trading to the next, take for example blue chip shares like Boeing Corp, Hilton Hotels,Time-Warner, Caterpillar, MGM, etc these shares are high vaue shares, yet from day to day the prices will move because of a variety of causes such as an interest rate increase, Institutional Investors selling out on dollars to buy Euros or Yen, the company declares an annual loss in its balance sheets on a years trading, or delcares that they are buying another company or have become a target of another company( a merger target) ther are quite simply complex issues affecting he stock ( share) on any given day and if you plan to invest money in any stock, then read as much prior information about the firm before you buy the stock.

The golden rule, buy as low as possible, watch the stock and then sell out when the price is high.

Answer 3

In international market crude oil prices have gone down. There are restriction on prices at domestic level.. Prices are decided by Government. There is a price Control. Naturally, expenses are more so not profitable. Demand and supply of stocks, profitability of the company, promotors' integrity, government policies, operators, international trends etc. are the factors in deciding share prices.

Answer 4

supply and demand...like anything else

if more people wish to buy the stock than there are seller, then the price goes up as the buyers compete with each other, thus raising the price. and the reverse is also true when there is more sellers than buyers

its an auction!

Answer 5

I don't fully understand your question.............. but;

A stock price is reflective of supply and demand at any given moment. It's an agreement of the value between two parties (this may only be a millisecond).

Hope this helps!