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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

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Q: Why do stocks go up or down in price?
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How does the stock market raise and lower?

The price of stocks is determined by the Demand and Supply theory. When there is a heavy demand for stocks and the supply is less then the prices go up. When there is a heavy supply of stocks and there is less demand then the prices go down. When the price of stocks goes up, the market goes up and when the price of stocks go down the market goes down.


How does value of stocks come down?

The price of stocks is determined by the Demand and Supply theory. When there is a heavy demand for stocks and the supply is less then the prices go up. When there is a heavy supply of stocks and there is less demand then the prices go down.


What happens to company's stock price when it announces investment plans?

Their stocks will either go up or down. It is not that hard.


What are the benefits of owning stocks?

Owning a stock is sort of like playing the lottery, you can buy them at a low price and hope that they grow and grow. The more money the company you invested in, the more your stocks will go up. Once the stock goes up that you bought you can sell them at a higher price and make a profit. Although the prices of the stocks can go down in which case you will lose a lot of money.


What market is it when there is a rise or expected rise in stock prices across the entire stock market?

The Stock Market index is the overall number that signifies the consolidated status of stocks. each stock that is listed in the exchange has a different weightage. The index is the weighted average of the price of all the stocks. when the price of the stocks in the index go up the index value goes up, similarly when the price of the stocks in the index go down the index goes down. A __bull___ market is when there's a rise or expected rise in stock prices across the entire stock market.BULL : )


A what market is when there's a rise or expected rise in stock prices across the entire stock market?

The Stock market index is the overall number that signifies the consolidated status of stocks. each stock that is listed in the exchange has a different weightage. The index is the weighted average of the price of all the stocks. when the price of the stocks in the index go up the index value goes up, similarly when the price of the stocks in the index go down the index goes down. A __bull___ market is when there's a rise or expected rise in stock prices across the entire stock market.BULL : )


What are the worst stocks to invest in?

Anything priced under $5 per share, which is called a penny stock. (Used to be, penny stocks were under $1 per share, but everything gets more expensive.) Penny stocks are more likely to go down in price than to go up, so they are the worst stocks to invest in.


Why do stocks in either market go up or down?

because they want to


What makes the prices of the stock go up and down?

The price of a stock moves up or down as per the Demand & Supply Theory. When there is a heavy demand for a particular share its price goes up. Similarly when there is an excess supply of a share then its price goes down. There are a lot of criteria that may impact the demand & availability of a share. Like its current quarter profit or high profile client loss etc...


Who decides when a stock goes up or down?

the people who buy and sell stocks give "bid" and "ask" prices for the stocks that they are buying or selling.when the ask price of some one selling and the bid of some one selling meet, that is the price of the stock.when they don't meet either the seller must give in to the buyer and go lower or the buyer give in to the seller and go higher. If the sellers are pessimistic about the market and keep selling for cheap then the price goes down. And if the buyers are optimistic and buy higher it will go up.


Why is diversify good for investments?

The basic idea behind diversification is somewhat based on the old addage that "one should not put all their eggs in one basket" because if the basket were dropped all the eggs would likely be broken. If an investor owns 10 stocks, it is not likely that all 10 stocks will go down in price. If you own 10 stocks and one stock drops in price by 10%, the average price drop for all 10 stocks will likely be much less. There is another side of the diversification issue. If you own 10 stocks and one stock price goes up 50%, the average price of all 10 stocks will likely go up much less than 50%. So, the issue of diversification provides some safety. It does limit losses if one stock goes down, but it also limits gains if one stock goes up.


What are the main determinats of price elasticity?

Well as demand increases the price will usually go up. As supply increases the price will usually go down. On the other hand if demand decreases the price will usually go down. If supply decreases the price will usually go up.