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How does stock market rises and falls?

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Susanna Eichmann

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Q: How does stock market rises and falls?
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What is the function of a stock exchange?

stock exchange determines that the country is poor or rich. India also has a share market(stock exchange market) in Mumbai.The stock exchange falls or rises each day.


If a stock has a beta of 1.2 what does that mean?

If market rises by 100% then the stock rises by 120%


What are the reasons why assets depreciate?

The stock market rises and falls all the time with the value of different assets. Its an inevitable part of the economy of any country


What does BETA indicate?

Beta is a measure of a stock's volatility. The price of a stock with a beta of 1.0 rises and falls on average with the overall market. A beta greater than 1.0 could mean larger prices fluctuations, and a beta of less than 1.0 indicates a more tame stock. For example, if Company A has a beta of 1.2 and the market goes up 10% in a given period of time then Company A should increase about 12% in value. If the market falls 20% then Company A's stock price should drop 24%.


What is the condition of the stock market when investors are unsure about the economy and stock prices are falling?

The condition is known as a bear market. A bear market occurs when the economy is in recession or when inflation rises quickly.


What is the purpose of learn day trading?

Day trading is a type of job where one makes trades in the stock market between the hours that the stock market changes. It is a fast-paced career where people are concerned with moment by moment rises and falls of stock prices, and large volumes of money are gained or lost. Learn day trading is a term used by those who teach people who to do day trading.


If demand falls and supply falls will equilibrium price rise?

In this case supply of goods surplus in the market and then their is cahnce to decreases in prices for the purpose of rises in demand.


Stock market symbol for Red box Movie Rentals?

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Demand rises and supply is constant?

No. If demand rises, then supply falls. Transveresly, if demand falls, then supply rises.


2 Scenarios If market return is 5 percent stock's expected return is -2 percent If market return is 25 percent expected return is 38 percent What is its beta?

The beta is the relationship of a stock's expected return to the broad market's return. A "high beta" stock will have a beta over 1.00, and thus move up more than the market when the market is advancing, and decline more than the market when the market is declining. A "low beta" stock will decline less than the market, or advance less than the market, depending. The problem with beta is that it assumes a linear relationship, and what you describe here clearly is not. Your stock falls when the market rises a little, and rises more than the market when the market is advancing. To calculate beta, you should look at a longer term analysis of your stock and the market -- say, weekly observations over a year. Most betas are calculated using this length of data. But check formulas -- many different ones are out there. Also remember that beta is only one measure of a stock's performance. Alpha is the performance of a stock that cannot be explained by its beta and the broad market movement. And of course, all of this is a "hypothesis" of market behavior which is useful in understanding broad actions, but very weak in predicting individual stock behavior.


What day is the stock market closed for the Fourth of July?

Because, Fourth of July is a fixed holiday attached to the date of July 4th it falls on different days of the week. If it falls on a weekday (Monday to Friday) that day will be a closed stock market day. If it falls on a Saturday (like in 2009) the Friday prior to the holiday will be a closed market day.


As output rises AFC rises?

AFC falls