What Moves Stock Prices
Stock prices are determined by supply and demand. When more people want to buy than sell, prices rise. When more want to sell, prices fall.
Factors Affecting Stock Prices
- Company Earnings: Strong profits usually push prices higher
- Economic Conditions: Recession fears can lower all stocks
- Industry Trends: Sector-wide changes affect related companies
- Investor Sentiment: Fear and greed drive short-term moves
- News and Events: Product launches, scandals, or management changes
Price vs. Value
A stock's price isn't the same as its value. A $10 stock isn't necessarily cheaper than a $500 stock. Look at valuation metrics like P/E ratio instead.