what cause the stock price go up?

Answer 1

The fundamentals of stock price valuation mean that stock prices are a function of future earnings, taking into account risk and the timing of these earnings.

Some people have mentioned that this is about supply and demand, which is correct, but it's also important to see that demand and supply is based on valuation models.

Demand will increase when something is perceived as undervalued, and supply may increase when something is overvalued.

So in the short term (or mid-term), if you are able to identify a stock which is undervalued, (e.g. you value a company at $6 based on your valuation, but it's only selling for $5), once the rest of the "market" realises this then the price will increase until the stock is worth approx $6 (your valuation might have been wrong). It is important to note, that often unhealthy companies are undervalued, that is, companies which are not good picks in the long term due to poor profitability and or future earnings, so although they might be poor long term investments they can possibly be good short term investments because of undervaluation.

However in the long term, stock prices mainly go up because earnings and/or expected earnings over time are going up.

Answer 2

The price of a stock depends entirely on the market's expectation for future earnings of the company. If the expectation of future earnings goes up, the price of the stock goes up.

Answer 3

I agree with the previous poster. Like any other commodity, stock prices are a function of supply and demand.

Answer 4

Someone wanted it more than someone wanted to sell it.

As the Rothschild saying went, translated to English, "Buy cheap, sell dear." If the price went up, someone wasn't going to part with it for cheap. Of course the opposite is true if the price went down, someone was eagar to dump it, so the buyer could be found, if he could find it was cheap.

Answer 5

More buys of the stock than sales.

Answer 6

Demand.

Answer 7

MARKET MAKERS!