Stock Market|Articles, Answers and Videos - about the Stock Market
Oct
29
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Berto C asked:
I have an idea that it is the stock holders themselves who are the only influence on the stock market. If many people are buying stocks then the market increases, if many are selling off the stocks then the market decreases. I am right? please tell me how it works? best answer gets many points and please have some credible source
WILLY
I have an idea that it is the stock holders themselves who are the only influence on the stock market. If many people are buying stocks then the market increases, if many are selling off the stocks then the market decreases. I am right? please tell me how it works? best answer gets many points and please have some credible source
WILLY
Comments
src50 on 31 October, 2009 at 11:29 am #
Basically, you are right. It is supply and demand. If there are many buyers and few sellers, then the price goes up. And vice versa.
Eric, RI on 2 November, 2009 at 11:39 pm #
Stocks have value because the corporations are expected to pay dividends from their profits or repurchase the shares.
Also the shareholders elect the management.
The profits are influenced by supply and demand.
If corporations can find or make things to sell and find people to buy them at high enough prices they make profits and their stock goes up.
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