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11y ago

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How does value of stocks come down?

The price of stocks is determined by the Demand and Supply theory. When there is a heavy demand for stocks and the supply is less then the prices go up. When there is a heavy supply of stocks and there is less demand then the prices go down.


Who decides when a stock goes up or down?

the people who buy and sell stocks give "bid" and "ask" prices for the stocks that they are buying or selling.when the ask price of some one selling and the bid of some one selling meet, that is the price of the stock.when they don't meet either the seller must give in to the buyer and go lower or the buyer give in to the seller and go higher. If the sellers are pessimistic about the market and keep selling for cheap then the price goes down. And if the buyers are optimistic and buy higher it will go up.


What is causing McDonald's stock to continue to go down in price?

McDonalds stocks have started to go down since the day I've purchased a whole bunch.


What happens when stock prices are down?

When stock prices are down, people with lots of money buy up the low priced stocks. They do so in anticipation that the stocks will eventually go back up and they will be able to sell at a nice profit.


What is the difference between Bear market and Bull market?

A bull phase refers to a economic scenario with booming investor confidence and surplus liquidity as a result of which everyone is buying shares and the prices of stocks are going up. It is termed as a bull phase because there is control/limit on the amount to which the prices go up. It is uncontrollable like the run of a raging bull. A bear phase refers to a economic scenario with diminishing investor confidence and lack of liquidity as a result of which everyone is selling their stocks. the prices of stocks come down crashing.

Related Questions

How does the stock market raise and lower?

The price of stocks is determined by the Demand and Supply theory. When there is a heavy demand for stocks and the supply is less then the prices go up. When there is a heavy supply of stocks and there is less demand then the prices go down. When the price of stocks goes up, the market goes up and when the price of stocks go down the market goes down.


What happens to company's stock price when it announces investment plans?

Their stocks will either go up or down. It is not that hard.


A what market is when there's a rise or expected rise in stock prices across the entire stock market?

The Stock market index is the overall number that signifies the consolidated status of stocks. each stock that is listed in the exchange has a different weightage. The index is the weighted average of the price of all the stocks. when the price of the stocks in the index go up the index value goes up, similarly when the price of the stocks in the index go down the index goes down. A __bull___ market is when there's a rise or expected rise in stock prices across the entire stock market.BULL : )


What market is it when there is a rise or expected rise in stock prices across the entire stock market?

The Stock Market index is the overall number that signifies the consolidated status of stocks. each stock that is listed in the exchange has a different weightage. The index is the weighted average of the price of all the stocks. when the price of the stocks in the index go up the index value goes up, similarly when the price of the stocks in the index go down the index goes down. A __bull___ market is when there's a rise or expected rise in stock prices across the entire stock market.BULL : )


How does value of stocks come down?

The price of stocks is determined by the Demand and Supply theory. When there is a heavy demand for stocks and the supply is less then the prices go up. When there is a heavy supply of stocks and there is less demand then the prices go down.


What are the risks of stocks?

Stocks can lose their value quickly due to adverse market conditions. There is also a possibility that the company will go bankrupt. Market shocks can cause volatility in any single stock or group of stocks.


What strategies can be used to navigate the volatility of stocks that go up and down a lot?

Diversification, setting stop-loss orders, and staying informed about market trends are effective strategies to navigate the volatility of stocks that fluctuate frequently.


If your company is acquired how are your shares affected?

It may have either a positive or a negative impact on the price of your stocks. Let us say XYZ Ltd has 1 million shares in the market out of which 400,000 is in the market and the remaining 600,000 shares is held by the management of XYZ. Assuming ABC Ltd wants to acquire XYZ, the 600,000 shares would be owned now by ABC and the remaining 400,000 would remain with the investors. Based on the history and past performance of ABC and the kind of management changes it plans on bringing into XYZ limited the price of the XYZ shares in the market might change. It can either go up or go down. Also, the share would get renamed to stocks of ABC Ltd and will no longer be stocks of XYZ Ltd.


How can you make money using the stock market?

Using the stock market requires knowledge on marketing and a lot of luck. You can review your stocks and when you see it going down you can pull it out. Remember that sometimes when the stock is down it doesn't mean it is not going to go back up.


Who decides when a stock goes up or down?

the people who buy and sell stocks give "bid" and "ask" prices for the stocks that they are buying or selling.when the ask price of some one selling and the bid of some one selling meet, that is the price of the stock.when they don't meet either the seller must give in to the buyer and go lower or the buyer give in to the seller and go higher. If the sellers are pessimistic about the market and keep selling for cheap then the price goes down. And if the buyers are optimistic and buy higher it will go up.


What does the stock market do in bear market?

During a bear market, usually stock prices are range bound or in cycles. going up by a few dollars and coming back where it started. It is also common for stocks to go down heavily in value causing losses to investors


What are the benefits to buying penny stocks?

The benefits to buying Penny Stocks is that the market has no place to go, but up and you can easily double or triple your profits in as little as a year.