Factors That Move Stock Prices Up and Down
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…
