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Why do business share prices fall?

Updated: 9/20/2023
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12y ago

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It has more of a human psychology involved rather than any other business situation. But yes, sometimes it does relate to the way business is going ahead. But company has nothing to do with its shares market prize. Share are basically a toy of some people who want to play with fortunes and money. One person makes other a fool. Company has nothing to do with its (share) market prize. If the company closes, the person holding the share will not get market prize for the share. Company will just pay the face value of share. This is what makes people sell the shares they own at whatever prize the share has currently, else they will end up getting just the face value by the company.

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Related questions

Why do stock prices fall?

one reasons is the way the investors speculate share prices. then the marketforces. if the economy is booming te share price go down.


What is the impact of disinvestment on the share price?

prices fall less due to demand in the market


What is the name for a period when business slows down and prices fall?

Depression


What is a name for a period when business slow down and prices fall?

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Where can one view the live share prices for companies?

live share prices are available on most mobile internet devices and can be downloaded as apps for IOS and android systems, some news channels and business channels also have share prices scrolling at the bottom of the screen.


What is recapitalizaion?

It is when there is a change in the structure of a company's capital. For example, this could happen due to a fall in share prices.


Why did samsung electronics share prices fall sharply in 2009?

Global recession and big companies like that always have some litigation.


What are the share prices in the UK?

The share prices of stocks in the UK are basically calculated in the same way as share prices in the US. The share prices of UK stocks can be tracked on the FTSE stock exchange and will vary from day to day.


Why did some people believe that lack of competition would hurt consumers?

Theoretically, competition keeps prices low because various firms vie for the business of consumers. When they compete, they attempt to win a larger market share by lowering prices. Therefore, if competition is lacking, prices will increase. Take a monopoly for example. No competition means they can set really high prices.


Where could a person go to get a detailed explanation of share prices?

Those seeking out a detailed explaination of how the stock market works, namely what drives share prices up or down can go to a couple of nice sites on the web. Those are Investopedia, Terry's Tips, and Business Insider.


What word means a period when business slows and prices and wages fall?

This could be referred to as deflation, or often is a sign of a forming depression.


How does share value decrease?

When there are lots of buyers, share prices go up, but when buyers sell their share, and there are no other buyers, share prices take a massive drop, i.e. this economic downfall