How share market goes up and down?

Question

How share market goes up and down?

Answer 1

when heavy selling comes ..market gose down ...&  when heavy buying comes its go up ...

Answer 2

Ok, put aside company fundamental, breaking news. For a not well known stock without heavy trading volume, on any given day, no news, no earning report, price still moves up down daily, why's that? is it just because firms and individuals who just try to disturb the market and try to profit from the price fluctuation?

Answer 3

It's all about supply and demand.  Say a stock costs $20.00.  Market makers and sellers have orders to sell at $20.01, $20.02, $20.03.  Other market makers and private buyers have orders at $19.99, $19.98, $19.97 and so on.  If a few market buy orders are taken, the market might execute the $20.01 and $20.02, and the opposite for sells.  At the same time, the orders above and below all the prices are changing compared to more sell/buy pressure, so larger orders at $20.01 than $19.99 will make it harder to move to the upside.  

Also, the reason markets are so volatile is due to the nature of their trading.  If you see, the majority of stocks have about 1% of all their shares outstanding in their average daily volume.  This means that this tiny 1/100 fraction of the shares are deciding the daily prices.  In conclusion, even small reasons for investors/traders to buy and sell can massively impact this delicate 1% balance, and the result is the volatility the stock market shows.

Good luck, and don't risk your money before you know what you're getting yourself into.

Answer 4

Theoretically it is the supply and demand. But this supply and demand itself is induced by various factors like news flows, company's earnings, technical breakouts etc.

Answer 5

Dude seriously read a good book

the questions u ask is junior question which can only be answered when you actually understand how the market work.

Its supply and demand.

Good news comes out, good prospectous demand goes up so does the price because quantity is limited.

and visa versa when bad news comes out.

Its way too complicated...

k but this is a start.