Why any compony share increase today and next day that compony shares down why? i want to know in detail?

Question

Why any compony share increase today and next day that compony shares down why? i want to know in detail?

Answer 1

The so called experts would like to know that too, there is no sense to it whatsoever. Its called gambling.

Answer 2

Lets take a look at the following situation

Company shares are currently selling for 18.00/share

I have 50,000 shares with an average cost of 10.00/share.

The Book Value of the shares is 16.00/share (so they are selling at a premium)

Ok so Today there is some new in the papers about something good for this company.  People want to buy the stock and start bidding the price you to say 22.00/share.

At the end of the date the shares close at 22.00.  Since @ 20.00 I would double my money, I decide to start cashing out some shares the next day.  At the next days opening people begin to realize that at 22/share they are OVER valued. So demand is a little weak.   Since I really want to sellsome of my shares (Profit taking),  I offer 21.90...and hence the shares start dropping.

It supply and demand at it's most basic.  Now that I have a good profit I do not mind lowering the price to make sure I get mine sold.

Answer 3

hi,

the people who bought at lower price may be selling for profit.the price will be pulled down.

or there may be any negative news in the market or about the company.

hence the price may fall. the never continuously rise or fall. it moves in both direction. because some people are tempted to buy. some book profit by selling.

all the best

http://vbulls.com

Answer 4

Some times particularly in like this when panic selling is going on you have such reaction from market. Bears take complete control of the market. The market when at the control of bears do react irrationally. Strong shares do lose points and close badly. But this is a short phenomenon. Glory will come back., consider this as an opportunity and buy shares that are pricer lower than they should be. Invest long term to arrest this slide.

Answer 5

all the market game

it is good to invest in SIP with insurance

http://shaktibanna.blogspot.com/2008/07/...

Answer 6

There may be lot of reasons for such a show.  There are support and resistance levels for each of the stocks.  If they reach these levels then naturally the stocks would reverse the trend unless they clearly break them.

Answer 7

that is what SHARES are all about !! its like rising sun on the east and setting on the west...

Answer 8

mainly supply and demand, but sometimes it is greed and hype.sometimes fear and panic.

If i was buying i look for the fear and panic. price goes down

If i was selling i look for the hype and greed. price goes up

Whatever you do do not do the opposite of the above.

Answer 9

I presume you are referring to shares that are traded in a market?

Wouldn't it seem a bit odd if they did not move up and down?

It's a constant battle between buyers and sellers. If there are more buyers than sellers (for whatever reason) the shares go up and vice versa.