What Affects Stock Prices?
Stock market prices are affected by business fundamentals, company and world events, human psychology, and much more. Introduction Stock market prices are affected by business fundamentals, company and world events, human psychology, and much more. Stock trading is driven by psychology just as much as it is by business fundamentals, believe it or not. Fear and greed are the two of the strongest human emotions that affect the market. For example, it is easy to get caught in the trap of selling a stock prematurely because it dipped temporarily and fear set in. On the other hand, it is also easy to miss out on a respectable gain because greed was telling you to hold out for more, and then the stock drops back down. One of the main business factors in determining a stock’s price is a company s earnings, including the current earnings and estimated future earnings. News from the company and other national and world events also plays a large role in the direction of the stock market. Some ex
