Do small changes in the stock market matter?
This is just one of the stories from our “I’ve Always Wondered” series, where we tackle all of your questions about the world of business, no matter how big or small. Ever wondered if recycling is worth it? Or how store brands stack up against name brands? Check out more from the series here.
Listener Jean Murray asks:
You report changes in the stock market that are tenths of a percent. As a physical scientist, changes on this order are not typically significant; we call them noise. Is a change of a tenth of a percent in a company’s stock really significant or might it lead to unnecessary alarm?
If you hear that stock prices are down a tenth of a percent, there’s no need to panic.
“A tenth of a percent is basically noise…
