What makes stock prices rise and fall?
rise or fall. Maybe you’ve had bad luck timing stocks you thought would explode or worse luck choosing to hold on to a stock that never went back up. A stock market price is driven by the purchase and sale of stocks. This buying and selling gives the stock market its volatility and promotes wildly swinging stock prices. Why are so many shares changing hands? The first reason is due to human nature. The stock market is an emotional creature that feeds on fear and greed. Both emotions are in ample supply in the market, and theres money is to be made from the mistakes which occur because of them! Another reason for the buying and selling is due to the media. Published quarterly earnings announcements can spike or spiral a stocks price, as can a positive or negative story regarding a company. These events are part of what is known as investor sentiment. Is the stock worth the investment? If the majority says no then the stock market price will plummet. Not everyone has the same investment
