Shares/Stock What Causes Ups and Downs in a Company's Stock Price

[Suba]

Shares are often interpreted as a letter of capital participation so that shareholders are also owners of the company. and they are entitled to claim on the company's income to be distributed (dividends), claims on company assets and they are also entitled to attend the General Meeting of Shareholders (GMS)

Stock prices are volatile, meaning that the stock price fluctuates depending on market forces (demand and supply). For those of you who already own shares, of course, you will be happy when you see your stock price is green, but you also don't need to panic when your stock price is red. So in theory the fluctuations in stock prices are normal or reasonable. However, there are several factors that often affect stock prices, which we know as internal factors and external factors. Next, let's discuss both:

Internal factors
Internal factors are factors from within the company that can affect stock prices, such as: The company's fundamental factors. Corporate factors which are top management policies such as acquisitions, mergers, divestments, rights issues, etc., and projected company performance.

External Factors
External factors are changes in stock prices that occur by factors originating from outside the company. Such as: macroeconomic conditions, such as rising and falling interest rates, inflation, unemployment. Fluctuations in local currency rates against foreign currencies. Government policies such as export-import. Panic sell, bad economic news will make shareholders panic and sell their shares. Market manipulation, market manipulation also affects stock prices by whales.

 

[Swissycheese]

Primarily interest rates. Free money means high stock prices, especially for growth stocks. Increasing interest rates effectively reduces liquidity in the markets

 

[arunima25]

It has been rightly said that stock market is a volatile one and keeps fluctuating with the internal and external factors. It's always a great feeling to see that the stocks that we have invested in is doing good and going up. No one likes to see that red alert or fall. It might create a panic situation for the people who are new to the stock market. But then those who have experience of staying there long or those who have the understanding of the functioning of the stock markets know that some of these dips or falls are just temporary and the numbers would rise again.
Stock markets run a lot on emotions. Any negative news or marketing can make the stocks fall. Also, whenever there is a phase of economic rectification, we see a fall on at ck market. One has to see this as a positive thing and not panic. Rectification can take some time and then the plateau might com. From there onwards, one would see the right organic growth of the stocks.
Stock prices sometimes are inflated. There is inorganic rise and that might be due to many causes. Economic rectification is needed then. So, even an inorganic growth is not something sustainable for long run in the market.