Want to know why a stock price changes?
The Stock Market can be confusing and overwhelming. When I was first learning about the Stock Market, I didn’t know why the prices changed so much. One day a stock is up 5%, the next, it drops -5%!
Why a stock price changes
The reason a stock price changes is because people want to own or sell the stock. The more people buy a stock, the higher the price will go. The more people selling the stock, the lower the price will go.
Reasons why people buy a stock (Stock price goes up):
- The company has increasing sales and profits.
- A well known investor is buying shares of the company.
- A cool new product or service was announced by the company.
- Good reviews left by media or people.
- Another company is purchasing the company at a higher price.
Reasons why people sell a stock (Stock price goes down):
- The company’s profits are slowing down.
- A well known investor is selling shares of the company.
- Most of the stock market is down.
- Rumors about the company.
- A powerful company becomes a competitor.
- The company lost a major customer.
-Finance & Code, taught by a pug.