What causes stocks to go up and down

Stock prices change everyday by market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.

As a stock becomes more desired and is bought up and becomes more scarce, the price goes up. This may be caused by an announcement or rumor that the company may be merging with another company and more profits are anticipated; or a company may announce that they will be doing major layoffs because business is slow, which may bring the value of the stock down. What is the driving force behind a stock price and what causes some stocks to be so volatile? When you buy a stock, you are buying a part of a company. However, that stock price of that company can go up and down drastically sometimes for almost no reason which in turn means the value of the company is going up and down as well. You buy a stock because you think that it will go up in the future. Of course, it’s going to be inherently difficult to predict the future and that’s one of the reasons why there’s so much fluctuation in prices.” The uncertainty that comes with investing in the stock market is why you tend to get good returns. 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

Investors may be forced to sell stocks, which drives prices down. All stock maket moves have one thing in common. The catalyst is a change in the supply and demand for stocks.

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. Investors may be forced to sell stocks, which drives prices down. All stock maket moves have one thing in common. The catalyst is a change in the supply and demand for stocks. On a typical day, the value of shares of stock don't move much. You'll see prices go up and down by a percentage point or two with occasional larger swings. On most days, investors choose to buy or sell shares based on their evaluation of the company's balance sheet, and their overall impression of whether a company is fairly priced. Stock prices change everyday by market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. As a stock becomes more desired and is bought up and becomes more scarce, the price goes up. This may be caused by an announcement or rumor that the company may be merging with another company and more profits are anticipated; or a company may announce that they will be doing major layoffs because business is slow, which may bring the value of the stock down. What is the driving force behind a stock price and what causes some stocks to be so volatile? When you buy a stock, you are buying a part of a company. However, that stock price of that company can go up and down drastically sometimes for almost no reason which in turn means the value of the company is going up and down as well. You buy a stock because you think that it will go up in the future. Of course, it’s going to be inherently difficult to predict the future and that’s one of the reasons why there’s so much fluctuation in prices.” The uncertainty that comes with investing in the stock market is why you tend to get good returns.

What makes Stock Prices go Up and Down? As evidenced by the constantly changing figures of the Dow and other common indexes, share prices of most stocks go up and down constantly. Day traders take advantage of the small swings that happen within the trading day, while longer-term, swing traders take advantage of the changes that occur over a

You buy a stock because you think that it will go up in the future. Of course, it’s going to be inherently difficult to predict the future and that’s one of the reasons why there’s so much fluctuation in prices.” The uncertainty that comes with investing in the stock market is why you tend to get good returns. 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

You buy a stock because you think that it will go up in the future. Of course, it’s going to be inherently difficult to predict the future and that’s one of the reasons why there’s so much fluctuation in prices.” The uncertainty that comes with investing in the stock market is why you tend to get good returns.

Sure the reasons for stocks to go down might be because of bad news or an earnings miss or whatnot, but if no one wants to sell the stock, the price will not go down. Why This is Important Having realized this fundamentally helps us make sense of the ilogical. 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. Investors may be forced to sell stocks, which drives prices down. All stock maket moves have one thing in common. The catalyst is a change in the supply and demand for stocks. On a typical day, the value of shares of stock don't move much. You'll see prices go up and down by a percentage point or two with occasional larger swings. On most days, investors choose to buy or sell shares based on their evaluation of the company's balance sheet, and their overall impression of whether a company is fairly priced. Stock prices change everyday by market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.

What makes Stock Prices go Up and Down? As evidenced by the constantly changing figures of the Dow and other common indexes, share prices of most stocks go up and down constantly. Day traders take advantage of the small swings that happen within the trading day, while longer-term, swing traders take advantage of the changes that occur over a

9 ETFs That Go Up When the Market Goes Down Markets can't go up forever, and even a modest correction may be overdue. By Jeff Reeves , Contributor Nov. 10, 2017 Why Commodity Prices Move Up and Down. Menu Search Go. Go. Investing. Stocks 401(k) Plans IRAs Mutual Funds View All ; SFO Magazine - Another good magazine that covers stocks, futures and options. 5 Causes of High Food Prices. Why You Should Rethink Investing in Commodities.

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 Because human emotion plays a critical role in what makes a stock go up or down during the short term, investors are wise to invest where expectations are low and positive surprises are likely. 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. But I know what markets are going to do over a long period of time - they're going to go up. We've always been a net buyer of stocks, says Buffett. Warren Buffett: When Stocks Go Down, It's And volume is the heart of the market (I really want to go up, or I really want to go down). Volume measures the commitment behind stock price movement. It lets you know how many people are involved in that move. If a stock moves on low volume then that means that relatively few people are participating in this movement. 9 ETFs That Go Up When the Market Goes Down Markets can't go up forever, and even a modest correction may be overdue. By Jeff Reeves , Contributor Nov. 10, 2017 Why Commodity Prices Move Up and Down. Menu Search Go. Go. Investing. Stocks 401(k) Plans IRAs Mutual Funds View All ; SFO Magazine - Another good magazine that covers stocks, futures and options. 5 Causes of High Food Prices. Why You Should Rethink Investing in Commodities.