What really causes a stock to go up or down? and Pro Stock #55 - Jamie Marshall

What really causes a stock to go up or down?

Do stocks go up because more people are buying it? (I know it goes up on good news, or good quarterly reportings, but what else?)

So if people start selling a lot, then the stock will go down?


Stock best answer:

Answer by raysor
The simple answer (nothing is simple in stocks and shares!) is more buyers than sellers or vice versa.
Next question is why would there be more buyers than sellers. Answer 'cos more people think it is going higher than people who think it is going lower. But why do more people think.....and so on.
Ok you say people buy because they see good news. But as many, if not more people sell if they see good news (on the basis that they had already been EXPECTING that good news).
Believe it or not some people even decide to buy by sticking a pin in the financial pages!

Stock

Pro Stock #55 - Jamie Marshall


Image by Robert Scott Photography
Here's the Pro Stock car belonging to Jenn's cousin Jamie. This was taken on Saturday before the cars were loaded up to take out to the Brighton, Ontario Speedway.

3 RAW capture HDR using the technique in My HDR Tutorial

Photo Editing Tutorials - Flickr Photographer Profiles Blog

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