Why Do Stock Prices Change?
Stock prices are changed everyday by the market. Buyers and sellers cause prices to change as they decide how valuable each stock is. Basically, share prices change because of supply and demand. If more people want to buy a stock than sell it – the price moves up. Conversely, if more people want to sell a stock, there would be more supply (sellers) than demand (buyers) – the price would start to fall. Stock represents ownership in a company. Therefore, the price of a stock shows what investors feel the company is worth. Stock prices can change at any rate, some have dramatic swings in one day while others stay the same for a long time. There are hundreds of variables which drive stock prices, the most important of which is earnings.. Think of earnings as the profit of a company, the money left after all expenses have been paid, this is what share holders desire. There is also a common misconception that a stock that has risen will always come back down, this is false. Stock prices refl
