What Events Influence the Stock Price in the share Market
Market is where changes occur often. The share price will be always having ups and downs because of the events and news. The price in market volatile and fluctuation can be caused by different factors which may be directly or indirectly connected to the company share. There are enormous reasons for the move of share price. The stock price trend is decided by the company and its nature, news and events of the company, economy, and other internal and external factors. Before an investor decides to invest in the stock market these factors should be taken into consideration.
All the countries in the world are inter- related for many reasons like import, export, occupation, tourism, etc. each country is dependent on another for viable reasons. This impacts the stock market. Any event in other countries can show its reflection in Indian stock market. The currency rates can cause market fluctuation either in positive or negative way.
Economy plays a vital role in the market. When the economy is at good status the market is at positive trend and any inflation in economy causes a negative trend the market. A good economy reduces the unemployment hence sales increases lead to hike in stock price of a company.
News Related to the Company
The news and events taking place in a company has a great impact on the market movement. Any announcement made by the company immediately shows its result in the market index. Good news increases the company value and its share price as such the bad news reduces the goodwill and share price. An acquisition can also reflect in the stock price as it may give hope on the company development.
When a company reaches the media for promotion the stock price automatically tend to increase. A company can do publicity for new product or new stock.
An election conducted in a country to choose the leader also have a impact over stock price. If the selected party supports the business sector to improve the economy of the country it results in boom of the market trends.
Natural calamities are unavoidable and unexpected. These causes a bigger effort to make up the losses and bring up the economy to its natural form. This affects a lot of investor confidence towards the market.
Demand and Expectations
Demand is created when they want for the product is higher or when the availability of the product is lower. An expectation is what investors load on the company. To buy a share an investor should keep in mind of both internal and external factors of the company. There may be no reason for the price hike of a share or the vice versa, but it is all depending on the demand and supply. A demand for shares may arise when the company is at its good platform and leads In hike in share price. The supply can increase when there any unexpected events occurring in the company this make the company to reduce the share price just in order to sell it.
War and Terrorism
War has a greater impact over the market as the economy of country may face a negative shock on the share Market. Terrorism also affect the country’s economy. This may tempt the investor to draw back their investment from the market.