Can anyone kindly explains what factors lead to the increase & fall of share prices?
shares can be good way to make money and i'm sure a lot of people are doing this already, i kind of have idea where to start but the main thing i want an answer to is the above question. can anyone point me in the right direction? good website links books etc, thanks
Answers:
Shares are affected by just about every event across the world. Shares dropped after 9/11 and earthqaukes and loads of other stuff. In the end I found it an awful way of making money, and very slow.
Now I do Maxnet.
Much faster, much more growth and faster
you sound very naive, I would keep away from shares
These are some sites that I frequent
http://champs-and-chumps.com/
http://biotech-news.org/
http://oil-profits.org/
http://gold-news.org/
http://mining-profits.org/
They all have good coverage of the major stock market sectors. That can really help you learn and choose companies to invest in.
Best of luck with your investing.
There are many factors that lead to share prices increasing or decreasing. Analysing shared generally falls into two camps. Fundamentals where the company balance sheet, profit and loss etc is studied. Or Technical Analysis where the share pattern is analysed. Investors look for patterns in the share price that may give an indication if the share price is likely to go up or down. There are lots of different angles to look at . Another example is momentum buying where shares go up because there is a demand and keep going up because people are getting into the band wagon. Expression also give another guiding hand for example never hold a falling knife. e.g dont buy shares that are dropping fast. The Stock Market has different sectors and one sector may be experiencing an increase while another may be experiencing a decrease. I have found it a buzz, getting involved in buying and selling shares but they say dont invest more than you can lose. After 5 yrs of dabbling, and having a price in mind e;g 30% below what you purchase at is a good exit strategy to prevent further losses that may be very difficult to recover. I went on a 2 day investment course which gave me general knowledge but I dont think you will find "The Way". You could also pretend to buy shares on paper first and try different strategies before you commit actual money. Use a watchlist e.g Yahoo finance. To monitor price trends. .there is a lot to say..once you have been successful on paper perhaps try with one hundred pounds until you make money, and then increase the amount each successive year.some off the cuff thoughts for you. Digital Look is also a good web site.
It is dangerous to your bank account to just jump into the stock market in any of its sectors. I did a lot of homework in it before I ever tried it, and even though I did o.k. overall, I had a broker (clerk) steal $8,000 from me and I couldn't find the paper trail to get my money back, or to prosecute him. The firm DID 'let him go', though, but I wound-up just getting out of the market and went into certificates of deposit instead because they are insured by the FDIC. At least my money is safe.
There is a lot of good info on the web, just need to look for it.
The big boys who are the institutions, banks, pension funds, retirement funds, mutual fund companies, endowments, etc., are responsible for up to 80% of a stock price move up or down. They have the millions and billions of dollars to invest and they don't buy just a few thousand shares at a time. They buy and sell sometimes hundreds of thousands of shares at a time over the course of days, weeks, months, and even years. You and I only buy a few hundred shares at a time. Once you learn how to interpret the charts/graphs with the volume and price action on it, then you can always tell what the big boys are doing and then you can follow in their footsteps. You can even tell what their next moves are going to be before they actually make the big trades.
I think some people here have really done a good job explaining the major drivers of equity values. To me, it is all about expectations. Prices are set based on what people believe will happen.not what has happened in the past. So, firms that stay in line with expectations do not tend to show a lot of price fluctuations. However, firms that greatly exceed or greatly fall short of the market's expectations open themselves up to price fluctuations.
If you are looking for really good sources for drivers of the stock market, Dr. Aswath Damodaran at NYU has a great website: www.damodaran.com. He's got tons of presentations, articles, models, etc that help out with that question. Also, I highly recommend his book titled Investment Valuation 2nd ed. It may be in its third edition by now, but I don't think so. He tends to not come out with new editions very often. Hope this helps.
Increase or decrease in share value can be due to investors res ponce to the following;
1. The profitability of the company based on the company's financial submitted
2. information coming out of the company like change in major product, the CEO, Product line etc.
3. Inability to pay dividend over period
and so may other things. all depends on how investors res ponce. positive responce increases the demand of the shares and thereby increase the market value of the share where negative responce means the shares are disposed off causing lot of the share floating around and causing a drop in the shares market value. so the investor's demand and supply have great impact on the fall and rise in the value of the shares.
Business / Commercial Awareness?
Ok, Improved cover letter taking your advice on board. What do you think?
Nick Leeson and the collapse of Barings?
Is there any millionaires out there who give to good causes?
Our confidential details & ID fraud, shouldn't there be better security?
Problems with the boss?
I have just been fired, im not sure what to do next?
how do i become a wedding planner?.i want to work hands on . i really beleive that this the best way forward.?
how do i calculate APR from monthly interest rate ? and vice versa?
Answers:
Shares are affected by just about every event across the world. Shares dropped after 9/11 and earthqaukes and loads of other stuff. In the end I found it an awful way of making money, and very slow.
Now I do Maxnet.
Much faster, much more growth and faster
you sound very naive, I would keep away from shares
These are some sites that I frequent
http://champs-and-chumps.com/
http://biotech-news.org/
http://oil-profits.org/
http://gold-news.org/
http://mining-profits.org/
They all have good coverage of the major stock market sectors. That can really help you learn and choose companies to invest in.
Best of luck with your investing.
There are many factors that lead to share prices increasing or decreasing. Analysing shared generally falls into two camps. Fundamentals where the company balance sheet, profit and loss etc is studied. Or Technical Analysis where the share pattern is analysed. Investors look for patterns in the share price that may give an indication if the share price is likely to go up or down. There are lots of different angles to look at . Another example is momentum buying where shares go up because there is a demand and keep going up because people are getting into the band wagon. Expression also give another guiding hand for example never hold a falling knife. e.g dont buy shares that are dropping fast. The Stock Market has different sectors and one sector may be experiencing an increase while another may be experiencing a decrease. I have found it a buzz, getting involved in buying and selling shares but they say dont invest more than you can lose. After 5 yrs of dabbling, and having a price in mind e;g 30% below what you purchase at is a good exit strategy to prevent further losses that may be very difficult to recover. I went on a 2 day investment course which gave me general knowledge but I dont think you will find "The Way". You could also pretend to buy shares on paper first and try different strategies before you commit actual money. Use a watchlist e.g Yahoo finance. To monitor price trends. .there is a lot to say..once you have been successful on paper perhaps try with one hundred pounds until you make money, and then increase the amount each successive year.some off the cuff thoughts for you. Digital Look is also a good web site.
It is dangerous to your bank account to just jump into the stock market in any of its sectors. I did a lot of homework in it before I ever tried it, and even though I did o.k. overall, I had a broker (clerk) steal $8,000 from me and I couldn't find the paper trail to get my money back, or to prosecute him. The firm DID 'let him go', though, but I wound-up just getting out of the market and went into certificates of deposit instead because they are insured by the FDIC. At least my money is safe.
There is a lot of good info on the web, just need to look for it.
The big boys who are the institutions, banks, pension funds, retirement funds, mutual fund companies, endowments, etc., are responsible for up to 80% of a stock price move up or down. They have the millions and billions of dollars to invest and they don't buy just a few thousand shares at a time. They buy and sell sometimes hundreds of thousands of shares at a time over the course of days, weeks, months, and even years. You and I only buy a few hundred shares at a time. Once you learn how to interpret the charts/graphs with the volume and price action on it, then you can always tell what the big boys are doing and then you can follow in their footsteps. You can even tell what their next moves are going to be before they actually make the big trades.
I think some people here have really done a good job explaining the major drivers of equity values. To me, it is all about expectations. Prices are set based on what people believe will happen.not what has happened in the past. So, firms that stay in line with expectations do not tend to show a lot of price fluctuations. However, firms that greatly exceed or greatly fall short of the market's expectations open themselves up to price fluctuations.
If you are looking for really good sources for drivers of the stock market, Dr. Aswath Damodaran at NYU has a great website: www.damodaran.com. He's got tons of presentations, articles, models, etc that help out with that question. Also, I highly recommend his book titled Investment Valuation 2nd ed. It may be in its third edition by now, but I don't think so. He tends to not come out with new editions very often. Hope this helps.
Increase or decrease in share value can be due to investors res ponce to the following;
1. The profitability of the company based on the company's financial submitted
2. information coming out of the company like change in major product, the CEO, Product line etc.
3. Inability to pay dividend over period
and so may other things. all depends on how investors res ponce. positive responce increases the demand of the shares and thereby increase the market value of the share where negative responce means the shares are disposed off causing lot of the share floating around and causing a drop in the shares market value. so the investor's demand and supply have great impact on the fall and rise in the value of the shares.
The answers post by the user, for information only, UKQnA.com does not guarantee the right.