Could someone pls tell me what affects the fluctuations in the stock market?

Question

I need 2 do a project on shares.So please help me !!

Answer 1

1.Dividend declaration dates-
many companies have a regular date they declare dividends (which legally commits them to pay or transfer dividend assets to stockholders) on. The owner the day before the date of declaration receives this dividend, regardless of the owner after.

2.Financial statement releases-

3.Analyst rating changes-

4.Company announcements-
new products, financial info, mergers and acquisitions

5.Changes in shareholder positions-
stakes by large shareholders, company executives, or speculators

6.Employee stock option exercise dates

7.Industry pertinent news, reports, analyses being released

8.Competitors-
announcements, new products, etc

9.Currency changes-
changes in the stocks denomination can make it easier or harder for foreign investors to take stakes, also companies products, services and input costs are affected by currency

10.Interest rate changes

11.Many funds have algorithm driven stock management, so when a trend is predicted or during the trend, positions may change to benefit or curb the possible loss.

12.Buy and sell orders-
Many individuals and dumb money funds (pension fund managers do this) have sometimes arbitrary orders for their brokers to sell or buy a position at a certain price, making hitting a benchmark steepen a trend.

13.Yen-
recently has had an inverse relationship with investors’ expectations for the stock market as this has become the preferred currency to have funds denominated in after selling a position, and before buying a position since the cost of doing so with yen is minimal.

14. Companies meeting or failing to meet estimates

Answer 2

There is a saying that goes something like this. If someone hiccups in Hong Kong it will be a hurricane by the time it reaches New York. Truth is there are so many factors that affect the buying and selling of stocks. Some are obvious like what the prime lending rate is. That affects everyone that borrows money, which is all of us. We see that with housing now. A lot of people confuse stocks with commodities. They are not even traded in the same place. Chicago has the commodities market. But some things cross the line to further confuse the matrix, like crude oil and gold. Shares simply put is buying a part of some companies future success. It is like gambling in a way. Generally speaking there is a hierarchy of traders, and a lot of this has to do with timing. The people with first or inside information can act quickly to either buy or sell according to the situation. Folks in mutual funds have their feet in cement and take the hit. The advent of computers has reduced the critical time down to tenths of seconds. The stock market is affected by real events but more so by perceived events. That is what the hiccup thing was all about.

Answer 3

There are many factors that influence the direction of the stock market. Some of them include interest rates (which impact financial stocks, and anything involving real estate); changes in government regulations; commodities cost fluctuation (sugar, oil, meat,); global politics; consumer confidence (this obviously affects retailers); lawsuits (particularly an issue with biotechs and pharmaceutical stocks); holidays (traders take days off and that impacts market volume and liquidity); and last but not least the well being of the underlying companies, industries, and sectors.

This is by no means a comprehensive list, but I'm hoping that it will give you a place to start and an idea of the complexity of the financial marketplace.

Good Luck.

Answer 4

Why do people buy stocks? Why do people sell stocks? You take all of those answers to those two questions and mix them up in a bag, then figure out some sort of average or prominant trend out of them.

When a game is played and points are scored, and one player or team is found ahead of another, then which action won it? If it were, say a basketball game and the final score was 85 to 86, which one point won the game? The last one was the common answer, but what if one player scored 50 points and the other four players on the court (plus substitutes or rotated in) scored the rest? Did one player win the game? Not necessarily, but then the rest of the team didn't score enough to beat the opponent. Still, while the star player was obviously more effective and efficient overall in scoring, while he was shooting none other other players could shoot (although they could have shot when they handled the ball at other points in the game).

Just like the basketball game, the stock market is an aggregate of actions. Some insurance company needs to free up some cash, so they sell a bunch of shares in XYZ. Some mutual fund has a formula that says XYZ should be representative of part of their market sector index, so they buy some shares. Someone died or divorced and the court ordered the brokerage portfolio in that name to be closed, so their XYZ is sold on the market. Somebody looks at a list of stocks and sees the price going down for all the selling of XYZ and says, "Oh, my, they are going to tank, sell those turkeys fast!" Still another person sees them falling and says, "Right on! I can get them cheap, Buy!" At one place a person might say, "XYZ is a nice company for our town, provides us lots of jobs, I want a piece of that." Someone else might say, "Hmm, things have been going too well for that company too long, I think maybe they are due for a turn, so I'll sell my shares in it."

What affects stock market fluctuations? All kinds of things.

Answer 5

If a business does well then its stocks do well because people want to own a part of the company by buying their stock and vice versa. When a company makes a product that is amazing then people want to own a part of the company that makes it so they can make money as the business makes money but stockholders also lose money as the business loses money which is why people sell high and buy low. Prices of stocks fluctuate with how well or poorly the business is doing.

Answer 6

News, speculation, fear, earnings, lots of things affect the market. But in basic and simple form: the market is driven by people's emotions and earnings. If a company earns what it says it will earn, people will buy the stock. If they don't people get scared and run for the hills. ex. Walmart announces next quarter they will earn $.70 a share. If they earn $.80, people will think they have good management and buy the stock. Something is going right. If they earn $.60 a share and come up short, people will get scared and sell all or most of their shares. More people buying= market is driven up. More people selling than buying=market is driven down. People who educate themselves make their own decisions, not listen to what their "broker" says. Good luck.

Answer 7

Supply and Demand -- if more people want to buy a given stock than sell it, the price goes up; conversely if more want to sell the price goes down.