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How stock market prices changes ?

Stock market is nothing but any other market where you buy something and another person sell something. Daily millions of share trade in every exchange. Basically depends on trades executed in particular timeframe price goes up and down.


Basic Things for market up and down:

Supply and Demand is day todays known term to understand market movement. In real life market consider there are 1000 apples each cost is 100 and for that 1000 apples there are 700 peoples who want to buy. So here 1000 is selling quantity and 1700 is buying quantity in another words you can say 1000 is supply and 1700 is  demand . So in this case Demand is more than supply so selling will increase his price from 100 to higher bid. it may be 110 or 120 this cause increate in price .Same if less demand and supply is more then to empty his bucket selling will sell his apple in low amount it may be from 100 to 90 or 80 or more less so this cause decrease in price.

In Stock market  same scenario is applied. Now instead of apple consider any listed company say Apple company shares. If more are buyer than seller of share by above supply and demand scenario it will go up and if seller are more than buyer it will fall down.

Reasons that can affect stock market price

As above basic will be same and remain main cause for changing stock market price but there are more reasons that affects stock market price change.

Sudden News

News is also responsible for price change. As human psychological behavior we believe in news and some people follows blindly. Lets say in news one stock is in trending for any good reason but in actual term there is nothing good in there profit sheet or in any company background. Just because of hike of good news and human psychology people starts buying and that cause increase in price . Same goes for selling side any bad news can affect on human mindset and people will start selling stocks in more than buyer so that affects on price too.

Facts regarding company

Some facts regarding company like profit statement ,Results , Any positive company deals can affect too. So we need to check every time what company is doing for good stock selection for Trading and investing both.
So in final statement we can say price change is all depends on demand and supply and what people thinking on any particular stock. 


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