Stock Trading and Other Things

What factors affect shares' prices on the stock exchange?

What are some global, economical, and business factors that affect the share prices on the stock exchange? I know there is alot, but what are the MAJOR factors that affect the share market?

Public Comments

1. Demand AND SUPPLY

One of the major factors affecting stock price is demand and supply. The trend of the stock market trading directly affects the price. When people are buying more stocks, then the price of that particular stock increases. On the other hand if people are selling more stocks, then the price of that stock falls. So, you should be very careful when you decide to invest in the Indian stock market.

Market Cap

Never try to guess the worth of a company simply by comparing the price of the stock. You should always keep in mind that it is not the stock but the market capitalization of the company that determines the worth of the company. So market cap is another factor that affects stock price.

News

When you get positive news about a company then it can increase the buying interest in the market. On the other hand, when there is a negative press release, it can ruin the prospect of a stock. In this case you should remember that news should not matter much but the overall performance of the company matters more. So, news is another factor affecting stock price.

Earning/Price Ratio

Another important factor affecting stock price is the earning/price ratio. This gives you a fair idea of a company’s share price when it is compared to its earnings. The stock becomes undervalued if the price of the share is much lower than the earnings of a company. But if this is the case, then it has the potential to rise in the near future. The stock becomes overvalued if the price is much higher than the actual earning.

2. jamar said it well.

Another thing to look at is the international market. Usually if the US have a bad night then the Australian stock market seems to follow the next day and vica versa.

3. 1.Earnings news ( It will tell everything about that company)
2.M& A news
3.Stock splits
4.Divdends
5.Overall fundamentals of Economy
6.Upgrade/Downgrade by any banks or rating agencies
7.Company's Future Forecast.

4. Rumours

The Weather

5. many things can affect them.

-here are some examples. when rumors came about on washington mutual, everyone took out their money, the stock became worthless, and was bought out. that affected WAMU.

-if a company's earnings are up, the value of the stock will also go up.

-if good news are being talked about on a company, value will go up.

-supply and demand. if more people and to buy a stock limited in supply, value will go up. if it's the other way around, value will go down.

there's other things that can affect it such as when a stock is being bought out or when a company is buying out another...

still many other ways..