What Determines the Price of Stock?
There are numerous factors that affect the price of a stock. It can be hard to actually know exactly what drives the market, but there are factors that can drive a price up or down. We know the basics. The more demand there is for a stock, the higher the price will be. Lower demand usually equals a lower price for a stock. But what drives the demand? Let’s say that stock LKJ closes on Wednesday afternoon at 26. What will it open at on Thursday morning? There is no real way to predict the future price of a stock. Oh, there are analysts that will try, but there are no guarantees put forth on the predicted price. What could happen between Wednesday afternoon and Thursday morning? Well, perhaps a major product that the company produces was pulled off the shelves due to labeling problems? Maybe the President of the company was arrested for embezzlement of company funds. Perhaps the company found a cure for the common cold. They could have finalized a deal with a major competitor for a grand
There are numerous factors that affect the price of a stock. It can be hard to actually know exactly what drives the market, but there are factors that can drive a price up or down. We know the basics. The more demand there is for a stock, the higher the price will be. Lower demand usually equals a lower price for a stock. But what drives the demand? Let’s say that stock LKJ closes on Wednesday afternoon at 26. What will it open at on Thursday morning? There is no real way to predict the future price of a stock. Oh, there are analysts that will try, but there are no guarantees put forth on the predicted price. What could happen between Wednesday afternoon and Thursday morning? Well, perhaps a major product that the company produces was pulled off the shelves due to labeling problems? Maybe the President of the company was arrested for embezzlement of company funds. Perhaps the company found a cure for the common cold. They could have finalized a deal with a major competitor for a grand
