Feb
Someone please thoroughly explain this to me.
Answer:
present and future profitability are important factors that help to determine the price of stocks.
if a company is profitable and there is excellent confidence the company will continue to be profitable, more and more people will buy the stock. google is an example of a profitable where many people have purchased the stock and have kept the price fairly high.
confidence and perception are also very important to stock price. for example, the price of citibank's stock has fallen to less than $2.00. bank of america is in pretty much the same position at less than $5.00.
there are other factors that help to determine the price of a stock. for example, a broker and it's staff can push a stock and drive up the price.
newspapers, radio and tv can help to push the price of a stock by favorable reports.
word of mouth can also influence stock price..
illegal behavior and insider trading has impacted stock price in the past and likely will in the future.
jeff410's answer above is also correct but subject to all the possible external things that can influence a stock's price.
Answer:
confidence!
if investors don't have enough confidence to buy or hold the stock, then the price will go down, that’s exactly what is happening in our stock market.
sometimes a particular stock might be heavily influenced by some huge investors (financial institutions). their particular views will drive the price up and down dramatically. a lot of small investors are often confused by the sudden unreasonable moves caused by financial giants. small investors tend to chase the price change, other than predict the change by logics, therefore they face more risks when they are in the game. however, small investors can run away, get out of the game easily while the financial institutions are not.
finally, you can never tell what determines the price for a particular share in the perceivable future, or you’ll be rich very easily. your knowledge, experience, intuition and a decisive move are the keys to predict and catch the right price level for getting lumpy profits.
Answer:
Price is based on the present value of future earnings. What investors will pay this day for the earnings a company is expected to make in the future. If future earnings are expected to rise in the future then investors will pay more for it and bid the price up. If its not expected to increase profits in the future the price investors are willing to pay falls.
Answer:
A combination of:
1) Fundamentals (economic value, based on earnings
prospects)
2) Investor sentiment (stock profile and stock image
coefficient)
.
Answer:
basic supply and demand
The more buyers of a stock, the higher the price.
More sellers, lower price.
One investor trying to purchase or sell thousands or millions of shares of one stock can also drive the price up or down.
Answer:
It is depend on Demand & Supply but with the performance of the company and future planning.
Some time price is depends on future market of stock, means depend on Satoriyo.
Answer:
Supply and demand .