HOW DO STOCK PRICES MOVE ?
HOW DO STOCK PRICES MOVE ? The main reason for the increase and decrease in prices of a stock are the market forces. The supply and demand factor leads to increase and decrease in the stock prices. If the demand is greater than supply the price moves up and if the supply is greater than demand price goes down. So what is that element which leads to movement of supply and demand forces? If there is any news or information which is beneficial for the company more traders will like to purchase shares of that company and the existing shareholders will like to hold the shares hence this leads to increase in demand and decrease in supply, and the price of the stock goes up. Similarly if there is any news or information which is not beneficial for the company traders will not like to purchase shares of that company and the existing shareholders will also like to sell the shares hence this leads to increase in supply and decrease in demand, and the price of the stock goes