Stock prices are determined in the marketplace, where supply meets demand. But have you ever wondered about what drives the stock market—that is, what factors affect a stock’s price? Unfortunately, there is no clean equation that tells us exactly how the price of a stock will behave. That said, we do know a few things about the forces that move a stock up or down. These forces fall into three categories: fundamental factors, technical factors, and market sentiment.
Key Takeaways
- Stock prices are driven by a variety of factors, but ultimately the price at any given moment is due to the supply and demand at that point in time in the market.
- Fundamental factors drive stock prices based on a company’s earnings and profitability from…







