Why do share prices move up and down?

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Are you a day trader?

The answer in two words is "Demand & Supply". Simply if there is more demand of a company shares and less people are willing to sell them, the share will move upwards. If there is a huge supply but no body is interested in buying shares at the current price, the share will move downwards.

Now the major question is how does demand or additional supply comes in to the market and the answer is, there are many factors involve in this including company's financial result, overall economy situations, sector performance, government rules & regulations, major political & natural events, future of the company, upcoming products & services, company management changes, stock market frauds  etc.

Any of the above and many more factors affect demand & supply of a company stock and ultimately move it prices to go up & down.

It's very hard to predict stock movement and require lots of research and expertise.

answered


2 Comments

RS
2. RS  Aug 9, 2020 10:17 I Like It. | Report Abuse Reply 0
Why do share prices move up and down?
Can you please explain in details behind who calculates that share should move up or down EVERY SECOND? How is this even possible?
Is this done by Computer System? How can a computer in real-time calculate the mentioned factors such as the company's financial result, overall economy situations, sector performance, government rules & regulations, major political & natural events, future of the company, upcoming products & services, company management changes, stock market frauds, etc?

How does the computer even calculate this? Is the Stock market controlled and manipulated by UNKNOWN people?
Laveshji
1. Laveshji  Feb 4, 2012 20:27 I Like It. | Report Abuse Reply 0
Hello,
Share Price Movement(UP - DOWN) is depend on it's own previous time duration performance, and secondly, it's depend on Daily, or on Particular Day, or on Particular time's market position.

Thanx,
Laveshji








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