What Causes Stock Prices to Change?

By Angel Broking | Published on 26th January 2016 | 137

Every new investor in the equity stock market segment wants to know the reasons that determine the rise & fall of stock prices. With Angel Broking’s fun-to-learn 60sec videos you can learn all about this & also learn about the basics of equity & share-trading.

“Stock prices change every day as a result of market forces.” Here’s an easy-to-understand explanation.

Transcript :

What makes stock prices go up and down Amit has a strawberry farm in peak season when the market has ample supply Amit’s strawberries are less in demand and are sold at a lower price. In off-season, Amit produces strawberries in his special nursery at that time there is a shortage of supply in the market So, Amit’s strawberries are more in demand and are sold at a greater price just like Just like Amit’s strawberries, stock prices are influenced by the demand and supply flows With rising demand, stock stock prices go up and with falling demand stock prices go down several factors like a company’s profit and loss positive and negative announcements national economic trend etc determine the demand and supply of a particular stock. Anyone can become a stock trader and earn profits from the changing stock prices by partnering with Angel Broking