Question:

How do stocks work? wat makes the stock go up and go down?

by  |  earlier

0 LIKES UnLike

How do stocks work? wat makes the stock go up and go down?

 Tags:

   Report

3 ANSWERS


  1. "A stock is a little piece of a big company. Big companies need a lot of money to invest - some they borrow from banks and some they get from the stock market by issuing stock certificates."

    mostly correct

    "Buy the stock and the company "owes you" but you cannot ask your money from the company, you can only get your money back by selling your stocks."

    totally wrong

    "If there are a lot of people who are buying, the price goes up. If there are a lot of people who are selling, the price goes down."

    not correct


  2. Its all about supply and demand if there is a demand for stoct it will rise because many ppl will be buying and puting money on vice versa with supply, the management can influence the stock to move up and down including the economic sentiments. in short lot of factors are involve in determining how the stock should move but the one tht outweighs al is supply and demand factor

  3. A stock is a little piece of a big company. Big companies need a lot of money to invest - some they borrow from banks and some they get from the stock market by issuing stock certificates.

    Buy the stock and the company "owes you" but you cannot ask your money from the company, you can only get your money back by selling your stocks.

    If there are a lot of people who are buying, the price goes up. If there are a lot of people who are selling, the price goes down.

    Theoretically, the price will go up if the company is doing well and making lots of profits. But in reality, nobody really knows so they trade their stocks on rumors. And rumors can be based on truth or not.

Question Stats

Latest activity: earlier.
This question has 3 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.