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What makes stock prices go up and down?
Its all about supply and demand. The more people who wants to buy the stock, the more the price increases. On the other hand when less people want to buy the stock, the price decreases.
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The stock market is an organized exchange where stocks of many companies are bought/sold by investors/traders using a common platform. The prices of the stocks that are… part of an exchange determine the value of that stock market index. When the prices of majority of the stocks that are part of the index go up, the stock market goes up. The price of a stock is determined by a variety of factors like, the global economic scenario, the performance of the company, recent profit margins, management decisions etc.
The "price" of gold is based upon supply and demand, the Commitment of Traders where the shorts and longs of Commercial Hedgers (industry) battle it out with Large (banks an…d financial institutions) and Small speculators (you and me), and finally what the value is of the currency that gold is priced in (like the U.S. dollar). From the standpoint of a U.S. investor, gold could be rising in price of U.S. dollars but not be rising in Euro's. Look at the 10 year chart of the dollar vs. gold and the EURO vs. gold here: ??????????????????????????????????????? - (click "10 Years") You'll see that there is a 70% difference in the "price" of gold for each currency. Gold is up 163% vs. the EURO as I type this (5/21/09) and up almost 240% vs. the dollar the last 10 years. All currencies have been losing ground to gold the last 10 years, hence the demand by investors to hedge against this continued decline (granted the U.S. dollar did bounce some last year as the price of gold fell). Inflation, defined as the increase in the money supply, NOT an increase in price, plays a part too. As nations increase their money supply, their currencies lose purchasing power. For example, if today all the money in the world bought all the goods in the world and then you doubled all the money in the world, you haven't created more wealth. You've just inflated the money. So now it would cost twice as much to buy all the goods in the world because of the increase in the money supply. I wrote a White Paper that explains much more called "How Gold Can Secure Your Retirement Years." You can download it free at ???????????????????????? ------------------------------------------------ someone tried to spam an answer in here, so I erased it. It was just one of those money making websites that offer on real info on gold, but was just full of ads that they could get people to click so they could make money. Google frowns upon this big time. ---------------------------------------------- So don't add any site with ads at all !!!????? you add a site start with kit?? with a millions of ads in its homepage also you add your spam site to collect visitors emails >> this is the biggest spam way in the world.
It's ALL about earnings -- how much money the company makes (or doesn't make) -- good old fashioned profits -- the bottom line. This is a true answer that is very easy to lose… sight of when Internet stocks are selling for hundreds of times the earnings that they don't even have, yet, and in-the-red IPOs that end in ".com" rise to higher market capitalizations during their first day of trading than companies that actually make lots of money and have been doing so for years. You see, another answer, but one that is "less true," is that stocks go up because of hype. Hype, momentum, the greater fool theory -- all ways to describe the seemingly irrational way some stocks behave. But when you look closely, you will see that the hype is always about earnings. I said this answer was "less true" because although stocks do go up because of hype and momentum, they also go back down eventually unless the earnings are there to sustain them. When hype-based momentum turns around, it can get ugly. One of the few indisputable facts of investing is that over the long term, stock prices rise because company earnings rise, or vice versa. But the fact that stocks rise because of earnings is only long-term truth. Prices don't track earnings that closely over short time periods, and even long-term, the relationship is not necessarily precise. There's a lot of room for hype. At any given point in time, stock prices within some earnings-dictated range are more influenced by the market's perception of what earnings will be. Not what earnings are , but what they will be. Sometimes those perceptions are realistic, sometimes they are wildly unrealistic. But always the perceptions are about earnings. One of Wall Street's truisms is that if you know the price of a stock will go to $50 tomorrow, it will go to $50 today. Think about it. If you know a stock is going up, the natural reaction is to buy it. If "everyone" knows it 's going up, and, therefore, "everyone" starts buying, what happens? Increased demand plus limited supply equals increased price. As the price approaches what "everyone" thinks it will be tomorrow, demand slows to equal supply, and the price levels off.
Stock prices like many other things related to the economy are based on supply and demand. As more buyers enter the market they begin exhausting the number of shares for… sale. As the sellers willing to sell at lower prices are bought out the price begins to move higher looking for an equalibrium. The price will continue to move up until it has reached a price that buyers are unwilling to pay. At this point stocks may begin to move down. This occures when there are more shares for sale than buyers are willing to purchase. Sellers will lower their price in hopes to find a buyer. There are many factors that might lead to increased buyers or sellers of a particular security. Some of these include, news related to a stock, earnings reports, large purchases or sales of a stock by a particular investor or fund, news effecting entire markets, mergers or aquisitions, and a variety of other factors.
they go up and down, because the stock can never stay in the same number for a long time, so if the stock is going up, it's doing great. but if it's going down, it doing bad
Stock prices go up and down based on the changes in investors' demand for a given corporation's stock. That demand is determined by investors' and potential investors' expecta…tions regarding the company's future profits. If potential investors expect that a corporation will make high enough profits in the future, and they want to share in those profits and are willing to pay the current market price for the stock, they will buy stock in the company. But since there are only a fixed number of shares available for sale at any given time, as more and more new investors want to acquire stock in the same company, its price will be bid up until it gets so expensive that the expected future return no longer justifies the investment required to acquire the stock. Similarly, if stockholders get information that leads them to expect that the corporation might not do as well as they originally thought (or it looks as if having stock in another company will yield a better return for them), they will try to sell their shares at the market price. But since new investors will not be willing to pay high prices for stock when there is a big risk that the company might perform poorly, and a lot of current stockholders are trying to sell their shares at the same time, the demand for the stock on the part of new investors will be low, and its price will go down.
I know its because of supply and demand
The prices go up and down depending on whether people who buy stocks think they are a good or a bad investment.... they also depend on whether anyone is actually trading… in these stocks on a given day.
Stock prices go up or down based on the Demand - Supply theory. Whenever the demand for a stock is more than its supply its prices go up Whenever the supply of a stuck is… more than its demand its prices go down
I know its because of supply and demand
It depends on the ratio of buying to selling in stocks. If more people are buying than selling most of the stocks in any index, then the index goes up. If more are being sold …than bought, then the index goes down
McDonalds stocks have started to go down since the day I've purchased a whole bunch.
i think the main reason of that is falling of US dollar
purchasing and owning stocks has always been a bit of a gamble, even at the best of times. as times and finances get tenser ,basic items like food and gas skyrocket- people pu…t more emphasis on the necessary instead of the risky,causing gas prices to go up.
In Stock Market
There is a misconception between stock price and companies profitability or lack there of. The price of a stock is public perception of the companies value. The earnings (…profits) the company reports represents the strength and market value of the company.