The market still serves both purposes, but today it is judged less by what it does for businessmen seeking capital than by what it accomplishes for investors seeking gain.
Stocks go up because more people want to buy than sell. When this happens they begin to bid higher prices than the stock has been currently trading. On the other side of the same coin, stocks go down because more people want to sell than buy.
In order to quickly sell their shares, they are willing to accept a lower price. It is possible to look at the financial statements of a company and determine what the company is worth.
They feel that sooner or later other traders will realize that the company is worth more than the current price and begin bidding it up. These traders also look at what is happening in the market as a whole trying to anticipate the effect it will have on an individual stock.
When this happens it can create some sudden and large price swings. This volatility is what makes it possible to make large profits in the market. It is also responsible for huge losses.
The stock market is essentially a giant auction where ownership of large companies is for sale. If some investors think that a particular company will be a good investment, they are willing to bid the price up. By the same token, when many investors want to sell a stock at the same time the supply will exceed the demand and the price will drop.
Watching the stock market can be likened to watching a ball bounce. It goes up and comes down and then goes right back up. This can be extremely frustrating for many investors who want it to go up in a steady pattern.
It is this volatility in the market as a whole and in the individual stocks that the experienced trader profits from. In the absence of a lot of experience, the individual investor needs a proven source of information and direction.
The daily stock market recommendations from www. This would work well in a constantly rising market. Unfortunately, the stock market does not go up in a straight line.
There are ups and downs that frustrate this type of investor. These traders make money in any market — up or down! Another well known investment site www.What makes a stock go up or down is determined by the recent operating results of a business and its future expectations.
This means stock prices reflect both fundamentals (operating results) and.
Nov 13, · Now that the market has become the prime source of a second income for many Americans, they are increasingly asking a puzzling question: What makes the market go up—and down? With so many people and so much money involved in investments, the market is inevitably fluttered by politics at home and alarms abroad, by racy tips and wild rumors that whisper along Wall Street. When it comes to the stock market, one thing is for certain: stocks go up and stocks go down. The question is, what makes a stock go up or down? Individuals typically buy and sell shares by using a licensed brokerage firm or broker who makes the actual trade.
Learn how factors like wars, inflation, government policy, technological change, corporate performance and interest rates cause a market to go up and down.
The stock market, just like the price of individual stocks, tends to trend.
Indices are prone to move in one general direction or another, until . Projections of growth and dreams of glory are all well and good as long as the stock is going up, but as I said, the market is always right, so when a growth stock turns down, my opinion of it.
So, yes, as everyone else is noting, ultimately stock prices go up and down because of supply and demand. When people buy stock, the outstanding number of shares decreases and the price rises. When people sell stock, the outstanding number of shares increases, and the price declines. The stock market is off to an awful start to the year.
Why? All the reasons you've heard why the market is going down are wrong. I’m sure tech stocks will continue to .