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Usually, market(buyers and sellers) decides the price of a stock based on demand and supply. The price changes often based on which party is stronger between buyers and sellers at a given time.
Demand and Supply drives the stock price. Price changes very often based on buyers and sellers action in the market. If buyers are strong prices will increase. if sellers are strong price will decrease
Demand and supply drives the price of the stock
price changes often due to fluctuation in demand and supply
Primarily there is fluctuation in any share due to Demand and Supply. This is due to various events happening that are observed by the investors ,making them to want to buy or sell a share . These events are called as catalysts. It can be Earnings , Products,Acquisitions, Regulatory laws and so on if favourable will push up the price of a share and if unfavourable ,will bring the share price down.
In other words if events are positive for a company , investors feel their earnings will increase in that company . So they want to buy the share . Due to increased buying there is demand for the stock and price increases. If the earnings in a company may not increase due to negative events like lowered earning , unfavourable laws or such events then , investors want to offload their shares and there are more shares waiting to be sold than the number of buyers. this leads to a fall in price .
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