What Causes the Stock Prices to Change?

We all know that stock prices change all the time. Sometimes, they rise real high, at times, they fall real low. There are also times when the stock prices are very volatile and change every minute.
If you are a beginner in the stock market, you’d probably be afraid of this because you won’t know when the stock prices change. However, if you do know the basic things that would trigger the stock prices, then you have absolutely nothing to worry about. Here are some of the factors affecting stock prices.

Supply and Demand

The first factor that affects the stock prices of an individual stock is the law of supply and demand. For example, if there is a high supply of the stock and low demand, then most likely, many people want to sell the stock with no one buying. This will affect the price of the stock. Stocks’ supply and demand ratio change by the minute, so in a day, a lot of things can happen, hence, the volatility of price.

Movement of Foreign Investors

Another factor that affects the stock prices would be the movement of foreign investors in the market. If more foreign investors are putting their money in local companies, then the stock market does go up in general. If they pull out, then the market also goes down. For example, in June 2016, investors pulled out more than a billion dollars from the US stocks. This dropped the market to a low on that month.

Political Activities

Another factor that is often overlooked by many, but still significant factor that affects stock prices would be political activities. Even if the political activities of a country do not directly affect the market, it does have an effect. Stock prices change whenever a political activity affects the economy of the country. For example, the US stock market went to a big low just some time before the presidential debate between Hillary Clinton and Donald Trump.

No, the debate did not cause the immediate drop in the US economy, but it did play a role. Most analysts speculated at that time that the US stock market lost around 1% of its gain because investors were bracing themselves for the debate and watching carefully. The banks also took a fall, but that was most likely because of a big hit from the Deutsche Bank.

Although there are so many more factors that can affect the movement of the stock market, these are some of the basic and shared ones. One thing to always remember is that the stock prices change because of a combination of factors. There isn’t a single factor that can solely bring down or bring up the entire stock market. If you are playing stocks, you just have to do your due diligence when buying and selling.

Choose A Best Legal Moneylender to apply loan – 1st Credit SG Pte Ltd

There are some people apply loans to do those investment. In case, investments need some money may reaching 1st Credit SG licensed moneylender. In fact, we are supply various type of loan product including business loan.

In fact, development market of money lending is advantage to the most of the people. If you facing emergency finance problem there are many resources available. Normally, money lender loan approval process is quick than bank and there is flexibility of repayment. Across Singapore there are a lot licensed money lender that recognize by Ministry of Law.

1st Credit SG Pte Ltd formerly named as Ariksha Moneylender is one of the top and Best Licensed Moneylender in Singapore. Our well trained consultancy can produce best service for every client. Besides that, 1st Credit SG licensed money lender is offering lowest interest rate for all loan product so you deserve for cost saving. Our loan agreement is transparent compare to others dishonest money lenders.

For more information may visit our website www.moneylenderhub.com .
Do not hesitate to call us at +65 6266 5422 or email 1stCreditSGPteLtd@gmail.com .
Visit our office at 149 Rochor Road #01-07 Fu Lu Shou Complex Singapore 188425.

Review Date
Reviewed Item
stock price affected by many effect
Author Rating

Leave a Reply

Your email address will not be published. Required fields are marked *