Stock Market Essay

Submitted By ch311
Words: 586
Pages: 3

Analysis of the Stock Development of SAMSUNG Electronics

The Chart shows the developing of the values of the stock of SAMSUNG Electronics. It shows the development over five days from November 29th to December 5th. As it can be seen the value of the stock decreases over the last five days in a more or less regular downward trend. So it can be asked why the stock losses some value over the last five days.
First of all it is important to know that stock prices are caused by supply and demand. When a business goes public, it issues stock. When they issue stock, they are giving people the ability to purchase small pieces of the company. If many people want that stock, then each share is now worth more, because people can raise the price of the stock. So, as people want more of the stock (presumably because they assume that the stock price will rise in the future, and think they can ultimately make a profit) the price will rise. It's important to realize that no one person sets the price of a stock - it's the market (the collection of people who are buying and selling the stock) who set the price. It is the collective interpretation of what people assume the stock will do in the future that sets prices. People buy stocks because they think that the stock price will rise in the future, and they will make a profit. Likewise, they sell stocks when they think that the stock will fall in the future, so they should cut their losses. In general it is unsure how much a price of a stock will increase but it is determined by lots of events that can happen. Increases can be from higher earnings, new products, Mergers or Acquisitions. Decreases include lower earnings, institutional selling, bad press releases, bankruptcy, recessions, etc.
So to understand why the value of the stock decreases it is very important to follow steps doing by their business and also the competitors. Moreover Apple and Samsung, as one of the competitors are continuing deliberating about high-stakes patent. So there are many uncertain procedures going on in the Samsung business, this is why stockholder do not want to hold the stocks because they maybe expect Apple as being the winner in their deliberation due