stock price Factors The News Stock market prices can be influenced by various factors, such as world news and company events, business fundamentals, supply and demand, oil prices, inflation, industry stocks, chart patterns, company earnings and company growth, economy, todays and years market, analysts targets, human psychology, and many others (Stock Price Factors).
Although such business factors like estimated future earnings and current companys earnings play an important role in determining the price of the companys stock, the company news, and the national and world news also heavily affect stock prices, as the news has influence on human psychology and trading decisions. Yet, it is very important to have a reasonable approach to the news, and use other methods of analysis in order to analyze the company’s current position taking into account the news affecting the company and to make a reasonable decision on which stock the person would like to invest with. The news has influence on the companies operating in different industries. Every trader and every analyst has his own perception of what the price of the company’s stock might be now, and what the stock price should be in the future. Obviously, the external events, such as world and companys news have influence on trading decisions. Different news can influence the price of the stock in different way. For example, layoffs news affects the companys price.
The Research paper on Dividends Policy And Common Stock Prices
... such firms, since investors’ perception about companies influence investors’ decisions which in turn affect the company’s share prices. However, any approach to dividend policy ... rate (macro-economic factors) on the stock prices on the Kuwait Stock Exchange, discovered that the macro-economic factors significantly impact stock prices negatively. A previous study ...
Usually layoffs are quite good for the business company, and have a positive influence on the companys stock price. It occurs because the companys expenses will reduce quickly and significantly. When the companys expenses reduce, the company’s earnings will increase immediately. It should be taken into consideration that layoffs are not always predict the company’s negative performance, because the layoffs can be simply a company’s response to a slower economy and can be one of the easiest and quickest methods used by the company to reduce its expenses in case the company’s sales do not meet expectations. One of the examples of layoffs news is the recent layoffs announcement by the giant toy store chain Toys R Us. The company has announced that it is going to close 64 stores and cut 1,900 jobs. The layoffs will allow the company to compete with the Wal-Mart.
After the announcement the companys stock price increased by $1.15 (US layoffs continue to mount in new year) However, sometimes the layoffs news can have negative effect on the companys price. For example, in contrast to the giant toy store chain Toys R Us, the online real estate company Homestore.com announced that it is going to cut 300 jobs because this is the only way to stay in business. In result of this announcement the companys stock fell to an all-time low of $1.12 (US layoffs continue to mount in new year) In such a way, the news can affect the company’s stock price significantly. It is very important to understand the nature of the company’s announcements and decisions, as it facilitates the understanding whether the company’s share prices go up or down in each of the companies due to the event. In order to make a successful choice about which stock you would like to invest with, it is important to use specific methods for facilitating predict the companys stock price. For example, technical analysis can help to predict the stocks price at least in the short term.
The Essay on Stock Market Prices Rational Stocks
'The stock market's movements are generally consistent with rational behaviour by investors. There is no need to invoke fads, animal spirits, or irrational exuberance to understand the movements of the market.' Discuss in relation to the information technology bubble and its collapse. Introduction In a perfectly efficient market, it is assumed that all investors have access to all available ...
Using technical analysis the person will look for indicators and patterns in the stock volumes, stock prices, moving averages, and many other indicators over a certain period of time. Although it is very difficult to predict the future price of the companys stocks, still, this method is one of the most effective methods, because it will allow to analyze the company’s current position taking into account the news affecting the company and to make a reasonable decision on which stock the person would like to invest with. Works Cited Stock Price Factors. 27 March 2008 . US layoffs continue to mount in new year. 27 March 2008 ..
