Stock Prices
A stock price is the lowest price at a seller willing to accept and the highest price a buyer is willing to offer for any particular market share. Depending on the market conditions, the acceptable selling and purchasing price can be changed dramatically from hour to hour or within few seconds to minutes. So, those who have invested in any stocks must be ready to watch the market trends every day or every minute to understand the best way to go for money making stock purchases and factors affecting stock prices. However, there are many factors that affect the stock prices go up and down.
The main factor can be the market sentiment as many times stock prices will rise or fall depending on variable market sentiments. The performance of the industry or sector the company is in can affect the stock prices. However, the stock prices of a company will benefit from a piece of bad news in its competitor if the companies are competing for the same target market. Investors and traders constantly assess and monitor the company’s Earning Per Share, Revenue and its future potential. So, the company that gains good earning results can expect a rise in stock prices and bad earning results will of course result in down fall in stock prices.
Take-over and merger factors may also affect the stock prices as a company being taken-over is anticipated to get a stock price boost and the company taking over another company shall experience a drop in its share price. In some minority cases, the stock price of the acquirer may get a boost if it is perceived that the acquisition shall contribute to its earning or revenue in the near future.
A company that is able to obtain new major contracts or major government order is expected to see a bull run in its stock prices. The introduction of new product to market is seen as a revenue enhancer for a company. Stock prices may get affected after the declaration of the dividend. There are some factors that also may affect the stock prices such as news about new technology, patent approval, war, natural disaster, product recalls and lawsuits etc.