Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By BusinessImpacts
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Factors That Move Stock Prices Up & Down

% of readers think this story is Fact. Add your two cents.


Factors That Move Stock Prices Up & Down

Many people directly jump into buying & selling shares after opening their trading account without knowing how the stock prices move. For successful trading, one important part is understanding the movement of the stock prices, which we will let you know in this piece of content.

In the stock market, the share prices are decided where seller supply meets buyer demand.

The fluctuations in the share prices play a major role in the trader’s profitability. If the stock prices remain stable, then the traders won’t be able to earn a good profit, and thus up & down in the prices of stocks is necessary.

The stock prices live change based on various factors, and here, we will elaborate on those factors to help the traders make some profits. When you invest your Capital into the stock market, you need to be aware of this situation.

Traders can understand those factors and accordingly make a trading plan to get returns on their money.

3 Major Factors Affecting the Movement of the Stock Prices

  1. Fundamental Factors

When talking about the fundamental factors, the two major ones are profitability and valuation (P/E ratio).

A person who purchases the stock gets the right for its earnings and the EPS, i.e., the Earning Per Share. Companies then distribute dividends to the shareholders, and the company invests the remaining earnings in the business.

If the valuation is the topic, the value multiple communicates expectations for the future. A lower multiple for the stock will result in a higher discount rate, but a higher growth rate will result in a higher multiple.

  1. Technical Factors

The technical factors have a major role in the movement of the stock prices. External variables influence the supply and demand for a company’s share. Some of the circumstances are so severe that they even affect the basics.

One of the key technical considerations is – Inflation. If the inflation level is low, we may see an increase in stock prices.

  1. News

News plays a major role in the share price movement, but quantifying its effect may be difficult.

It is well known to those involved in stock trading that even a single news item can move the market and stock prices in either direction. Whether it is news regarding the geopolitical situation, global economy, mergers & acquisitions, etc., all affect the individual shares and stock market.

As the trading of shares happens worldwide and markets & economies are interconnected, and thus the news in one part of the globe may affect the share prices all around the world.

Conclusion

In conclusion, we would say that before starting trading in the stock market, one must know some crucial things, and the factors that affect the prices of the stocks are one of them. The share prices and stock market are sensitive to many factors and react quickly to those factors. We have mentioned some major factors contributing to the movement of the stock prices.



Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.