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How do you cause the value of shares to rise?

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βˆ™ 2010-02-05 19:49:08

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The value of shares in a company are affected by many things. It also depends on what kind of shares they are. Lets assume shares that are openly traded on the stock markets. In order to make these share prices rise the company needs to inform the Stock Market of some "good news" this can be a potential take over bid, winning a major new contract, or even winning a law suit ( lily's shares rose considerably after winning the Prozac case in Kentucky). Sometimes even the appointment of a new MD or senior manager can cause increases in share price. Normally share price would rise if the company where to report higher than expected profits. If you wanted to force the shares to rise you would need a lot of money and you would have to start buying a large number of that companies shares. This may cause a run on those shares as other traders see a sharp increase in the share values. If you assume that the shares are held in a non listed company then the only way to increase the share value is to increase the companies value. You can do this in a number of ways but basically comes down to the level of pretax profits.

AnswerThe price of a stock is determined by how much people are willing to pay for it. Like anything else, stock prices are determined by supply and demand. Stock traders set the price for stock by offering a Bid price, which is the price that they are willing to buy the stock for, and Ask price, which is the price they are willing to sell the stock for. If enough people come into the market to buy the stock, all the people who are selling the stock for a certain price will be taken out, and the next best ask offer will come into the market, which will be a higher price. In order to move the price of the stock higher, you will have to buy stock from all the people who are currently selling the stock at the current price.

Answer

Stocks are controlled by 2 things, supply and demand. The more supply and/or the less demand you have, then stocks will plunge. The less supply you have have and/or more demand, then stocks will rise.

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