In a bull market, investors buy stock in expectation of higher profits.
A bull market
Buying stock (shares)
Stock prices rise and fall depending on a company's profits. If a company's profits keep growing, its stock price will grow as well. If a company's profits fall, the price of the stocks will fall as well. The price of the stock actually is dependent on investors confidence in the company to continue to grow and show a profit. For instance, a company's profits could be stable or even increasing, but if a rumor that it is about to experience hard times is believed, it's stock price could fall. Answers with links in them are not permitted.
When a recession is anticipated, stock prices typically decline as investors become more cautious and adjust their expectations for corporate earnings. Increased uncertainty about economic conditions can lead to reduced consumer spending and lower business profits, prompting investors to sell off stocks. This negative sentiment can create a downward spiral in stock prices, even before the recession officially begins. Additionally, sectors more sensitive to economic cycles, such as consumer discretionary and financials, often experience sharper declines.
It is a way for investors to avoid paying a future higher price of a stock. NOVANET
A bull market
Investors were promised part of the profits. >niece
Investors were promised part of the profits.
Investors were promised part of the profits.
joint stock company
a company owned by investors who share the profits
This month will definitely give profits to investors.
joint-stock company
Risky stock purchases are investments made by investors who are seeking high returns at the expense of a higher level of risk. These stocks typically belong to companies with uncertain financial performance or are in volatile industries. Investors take on the risk with the expectation that the stock's value will increase significantly over time, leading to substantial profits.
They take less risk, theoretically, so they have lower expectations.
A strong economy typically leads to higher corporate profits, which can boost stock prices. This is because companies tend to perform better in a growing economy, attracting more investors and driving up stock prices.
Buying stock (shares)