The factors that influence the stock market

Trading in stock is the simplest way among all the investment. It is available for all ranges of an investor in the world. However, the stock market also has the riskiest investment among the all other option. The price and fall and rise anytime and no one has a complete say in this.

If one can understand the reason for the rise and fall then you too can be a great investor like Alan Jiwan. Here are the factors that most influence the market of stock.

Company news and performance

The company is the main reason why the fluctuations occur. The performance and the undergoing business in the company determine the stock prices. The crucial factors of the company that determines the process are:

undergoing business

  • The profit and losses of the company along with the estimated future earnings. The more the profit of the company, the more you will get and vice versa.
  • The announcement of the increased dividend increase the profits
  • The dusk of a new product
  • The recent mergers of the company
  • Change of management may affect the stock prices by reducing it.

Industry performance

Companies of the same industry anticipate each other. If a company is affected then the companies in the same industry are most likely to be affected because the price of the product that they supply is decreasing. However, if the stock price of a company is because of the internal affair of the company then the prices of the companies in the same market will increase.

Investors’ confidence

The stock market is determined on the con concept of demand and supply. The more the demand of the shock the higher the price will go and the lesser the demand the lower the stock. This is determined by the investor who invests in the stocks.

  1. Bull market: If a stock market is rising then the confidence of the investors are rising. They invest money and since the demand is growing the prices go high.
  2. Bear market: If the price is going down then the investor is afraid and seize to invest in it. This brings the prices down.

Conclusion

It is not easy to analyze a stock after a long study you can predict the market well.