![]() Similarly, a company that has to sell part of its stake, let go of employees or close down branches will experience financial struggle or a downturn in its earnings. If the company reports an interest hike or if it acquires another company or breaks into a new market, it is considered to be in good financial health which results in a stock price hike. However, if the company's earnings have failed to meet projections or if the company has earned less than what it was projected to earn, it's share price will most likely fall. Companies listed on the stock exchange have to declare their earnings every quarter and annually in an Earnings Report or Quarterly Report wherein you can check whether the company's earnings have met or exceeded projections.Ī company that reports good growth per share will automatically experience more demand. People invest long-term in a company that is making good profits and attracts more investors which causes its share price to rise. What factors cause stock prices to fluctuate? When experts refer to market risks they are referring to this falling and rising demand and supply. ![]() For example, when many traders are buying stock X, stock X's price per share will increase and the same is true vice-versa. The more drastic the demand-supply gap, the higher the price. When the demand for a stock exceeds supply, there will be a rise in the price of a stock. Stock market prices are affected by demand-supply economics. The main goal of trading on the stock market is to buy stocks and sell them at a profit. People are afraid to begin trading because of the constant fluctuations of the market. The stock market is an easy and quick way to make your wealth multiply. ![]()
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