Essay about Stock Market and Basic Economic Concepts

Submitted By ana123szcxczvxcv
Words: 350
Pages: 2

What Broad influences affect the stock market.
The share market is very volatile and always changing, there are many factors that influence the stock market. The factors can have a negative or positive affect on the stock market. If
Changing interest rates, or specific news pertaining to one company news influences the price of all shares traded in the stock market.
The basic economic concepts of supply and demand affects the stock market. If more people are wanting to buy shares the company, the demand of the share increases. Therefore, this will increase the share price as there is only a limited supply of stock available. On the other hand, if the demand of shares decrease, more supply is available and will result in a decrease in share price.
The demand and supply of a company’s shares, may depend on factors of the company. These factors include the attractiveness of the company, the company’s news or announcements and the performance of the sector the company is in. News or announcements not only influence the supply of demand of a company’s share but also the share price traded in the stock market. If the company shows consistent returns, good management and stabled share prices, this will attract investors and increase the demand for its shares.
Positive announcement or news……goood yhhh
Negative company announcements that portray the company or their key players in a bad light, whether it be exposing scam or revealing a drop in profits, will result in…