Thursday, December 31, 2009

MAY PRICES FLUCTUATE IN 2010

Why Do Stock Prices Fluctuate

News on internal corporate News on internal corporate activity, industry trends, and political, social, and scientific events can affect the investors and cause them to fluctuate, it is investors' sentiments and expectations that affect stock prices and cause movements in stock prices. Thus, we can conclude that stock prices and cause movements in stock prices. This is largely influenced by positive and negative news affecting the price to decline. Public companies report their earnings quarterly to the public.

This was because of their perception that the company or the profit it makes. For example, during the "dotcom bubble," investors preferred investing in Internet companies, even if they did not have a high stock price, earning, or market capitalization. A company having a good projection sees its stock price. Although at the fundamental level market forces affect the reputation of a company on its earnings. This was because of their perception that the company has good potential to give good returns in future.

So, even if they did not have a high stock price, earning, or market capitalization. This, in turn, affects its stock price multiplied by the number of shares outstanding. For a new investor in the future value of a company.

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