Shares/Stock Rise and fall of stock prices

greenieS

Verified member
From your point of view, what are the main factors that cause prices to rise or fall?

From my point of view, when the sellers are few and the buyers are many, of course the price will be high because it is a rarer product that you do not find on the market. Conversely, when the sellers are many and the buyers are few, the prices will go down and the sellers will fight among themselves who has the lowest price, just to sell that product.

But apart from this factor, from your point of view, what other factors cause the sudden rise / fall of stock prices?
 
The first problematic is that a concurrent company is just spreading rumors about this company that causes that most of people will buy their actions then the concurrent company is cherish from this moment to sell their actions and becomes a principal actioneer then this company will not take actions whitout acceptance of concurrent company because the decision is up to them to accept or decline. This is one principal reason of the sudden rise or fall of stock prices and this is common so the investor must be prudent from such informations and take them seriously and think before any buy or sell.
 
I think the only reason for the rise and fall of stock prices is the trading. When there are more selling than the buying then the law of supply and demand would prevail which means the price would go down because of the few buyers. Vice versa when there are more buyers and only few sellers that means the demand is greater than the supply. Frankly speaking, I do not know what causes the trend but maybe it is dependent on the traders. When there is excess money investors will buy stocks even if the price is pretty high in the hope that the price will go up higher. There is also the note that when there are many buyers the trend is to increase the market price. But then again, I am still in the learning stage so my opinion cannot be taken at face value.
 
Top