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Why do stock prices change

In the online share market, a stock is said to have a “bullish outlook” if its demand is more typically its price will be more. When the supply of a stock is more, the price will be less making it have a “bearish outlook”.

There are many causes for the fluctuation in stock market price. Some influencers driving a change price of a company stock are:

Positive or negative news about the company News like major acquisitions by the company or its rallying about to pay debts to financial institutions may affect investor sentiments, their attitude towards the company and influence people to reassess their holdings through online trading account

Sudden selling or buying of huge amounts of company stock A large shareholder who holds significant portions of their stock may want to diversify their investment and offer their shares to buy through a trading accountand thus increase the supply without many who would be interested in buying them. He may be forced to sell them at a lower price

Considerable changes in a company's earnings The profits of a company can have an impact on its stock prices in the equity market. If the earnings are more than what was expected, the value of the stock will increase. When it earns lesser than expected, there will be a dip in the stock price

Change in economy The stock prices tend to change overall, irrespective of the company depending on the state of the economy. For example, inflation will tend to raise the price across the board.

Though there are various theories in share trading to explain the roller-coaster changes in stock prices in exchanges like the stock market India, there are many who believe that it is difficult to pinpoint one that gives a definitive reasoning.

There are a number of people experts like a stock broker who bank on high-end technological advancements to track price movements to enable smarter trading in online share market by zeroing down on long term and short term causes.

The stock price changes are said to indicate what the investors believe the company is worth. However, two major factors affect the price of any product- supply and demand. So also, at the very basic level the stock prices change is due to the change in its demand and supply in the share market.