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14y ago

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Continue Learning about Economics

What is the Risk of being a stockholder?

A stockholder owns part of a company. The price he paid for the stock has little bearing on its value, which depends on the value of the company or on the profits it makes. A stock may either increase in value, or decrease, and if a company becomes insolvent, the value of the stock could fall, even to zero.Some forms of stock (including preferred stock) may pay dividends, which can provide profits without having to sell the stock.


Why do stocks fluctuate in value?

Stocks fluctuate in value due to various factors such as changes in company performance, economic conditions, market sentiment, and external events. These factors can impact investor confidence and lead to buying or selling of stocks, causing their prices to rise or fall.


How does stock prices fall?

I know its because of supply and demand


Why do stocks rise and fall?

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.


How did most investors react in a sudden stock fall in 1929?

they pledged their stocks as collateral.

Related Questions

What determines the movement of a stock price, causing it to either rise or fall?

The movement of a stock price is determined by factors such as company performance, market conditions, investor sentiment, economic indicators, and news events. These factors can cause the stock price to either rise or fall based on how they impact the perceived value of the company.


How do you know when stocks rise or fall each day?

Stock prices rise or fall based on supply and demand in the market. Factors such as company performance, economic indicators, news, and investor sentiment can influence stock prices. By monitoring stock prices, volume, and news, investors can gain insights into whether stocks are rising or falling each day.


What is the Risk of being a stockholder?

A stockholder owns part of a company. The price he paid for the stock has little bearing on its value, which depends on the value of the company or on the profits it makes. A stock may either increase in value, or decrease, and if a company becomes insolvent, the value of the stock could fall, even to zero.Some forms of stock (including preferred stock) may pay dividends, which can provide profits without having to sell the stock.


How is the value of a good or service determined?

The value of a good or service is primarily determined by the interplay of supply and demand in the market. When demand exceeds supply, prices tend to rise, reflecting higher value. Conversely, if supply surpasses demand, prices may fall, indicating lower value. Additionally, factors such as production costs, consumer preferences, and competition also influence the perceived value of goods and services.


How is the value of good or service determined?

The value of a good or service is primarily determined by the interplay of supply and demand in the market. When demand for a product exceeds its supply, prices tend to rise, indicating higher value. Conversely, if supply outstrips demand, prices may fall, reflecting lower value. Additionally, factors such as consumer preferences, production costs, and market competition also influence perceived value.


Do seeds always grow where they fall?

Seeds do not always grow where they fall. Factors such as environmental conditions, competition with other plants, and seed dispersal mechanisms can influence where a seed will germinate and grow.


How often do sunflowers bloom and what factors influence their blooming frequency?

Sunflowers typically bloom once a year, usually in the summer or early fall. Factors that influence their blooming frequency include the amount of sunlight they receive, the quality of the soil, and the availability of water.


Why is it a good time to buy BP stock?

At the moment BP stock is low as compared to the recent past. Therefore if you were to assume that BP will be able to sort out the troubles that have caused the stock price fall, you could expect the stock to regain its former value. However, there is a risk, past performance is not necessarily an indication of future performance.


What factors can influence the movement of the water table, causing it to either rise or fall?

The movement of the water table can be influenced by factors such as precipitation, evaporation, groundwater pumping, land use changes, and geological conditions. These factors can cause the water table to either rise or fall depending on the balance of inputs and outputs of water in the system.


Why does the stock market fall?

cause santa died


To fall in monetary value?

When an asset's price decreases over time, it is said to fall in monetary value. Numerous factors can contribute to this decline, including changes in economic conditions, market demand, or investor sentiment. Investors may experience losses if they sell the asset at its reduced value.


Why do stocks fluctuate in value?

Stocks fluctuate in value due to various factors such as changes in company performance, economic conditions, market sentiment, and external events. These factors can impact investor confidence and lead to buying or selling of stocks, causing their prices to rise or fall.