RRZ.com Investments

How does the market trends influence the price of the stocks?

Trends in the economic markets influence the price of stocks in the stock exchange. How does this happen?

Public Comments

1. The price of stock are influenced by many factors, one of them is the trend of the market. If a market is growing and a company see that it can satisfy this growing the it can expect to increase its sales more quickly than the cost. This increase the benefits. The owners of the companies and investors (speculative and no speculative) see the possibilities of obtain for them this benefits and they wish to get the paper. Many investors demanding papers of one company increase the value of the paper. Now suppose that a big number of companies which quote in Wall Street expect to obtain big benefits; the price of all these papers will increase and finally will increase the indicators of WS: NASDAQ, S&P, etc.