Comments on: What Makes Stocks Go Up or Down in Price http://investing-school.com/fundamentals/what-makes-stocks-go-up-or-down-in-price/ To Learn as Much as We Can About The Complicated Subject of Investing! Thu, 02 Feb 2012 22:37:14 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jacob Carmack http://investing-school.com/fundamentals/what-makes-stocks-go-up-or-down-in-price/comment-page-1/#comment-138647 Jacob Carmack Sat, 24 Dec 2011 22:53:02 +0000 http://investing-school.com/?p=29#comment-138647 Oh I forgot one more question. Does anyone know of any resources on the web where you can receive information of how much shares of a certain company was traded? So, percentage of volume traded for that day? I'm sure you know where to find this but I'm not at trading. Oh I forgot one more question. Does anyone know of any resources on the web where you can receive information of how much shares of a certain company was traded? So, percentage of volume traded for that day?

I’m sure you know where to find this but I’m not at trading.

]]> By: Jacob Carmack http://investing-school.com/fundamentals/what-makes-stocks-go-up-or-down-in-price/comment-page-1/#comment-138645 Jacob Carmack Sat, 24 Dec 2011 22:34:03 +0000 http://investing-school.com/?p=29#comment-138645 I have a question. Where can I go on the web to find companies that have very few stock shares (i.e. 1000 shares to 10,000 shares) but are trading on the nasdaq? Idealy it'd be nice to be able to find a company that has the following characteristics for what I am looking for: 1) It's traded on the nasdaq 2) It has very low amount of shares 1000 - 10,000 shares 3) It has a low price of it's stock, something under $5 preferably. Anyone know of any good resources on the web that can make my life easier in being able to find this type of information? I have a question. Where can I go on the web to find companies that have very few stock shares (i.e. 1000 shares to 10,000 shares) but are trading on the nasdaq?

Idealy it’d be nice to be able to find a company that has the following characteristics for what I am looking for:
1) It’s traded on the nasdaq
2) It has very low amount of shares 1000 – 10,000 shares
3) It has a low price of it’s stock, something under $5 preferably.

Anyone know of any good resources on the web that can make my life easier in being able to find this type of information?

]]> By: wezly http://investing-school.com/fundamentals/what-makes-stocks-go-up-or-down-in-price/comment-page-1/#comment-132330 wezly Fri, 09 Dec 2011 00:28:28 +0000 http://investing-school.com/?p=29#comment-132330 If i put money in a mutual fund company, will i be the owner of shares which the mutual fund company buys? Or is it the mutual fund company owns those shares? If i put money in a mutual fund company, will i be the owner of shares which the mutual fund company buys? Or is it the mutual fund company owns those shares?

]]> By: Aglimah http://investing-school.com/fundamentals/what-makes-stocks-go-up-or-down-in-price/comment-page-1/#comment-120777 Aglimah Fri, 11 Nov 2011 13:35:37 +0000 http://investing-school.com/?p=29#comment-120777 Why does stock price typically turn before the economy? Is it caused by supply and demand or expectation from economic indicator? For sure we know that stock price is the leading indicator, but why? Why does stock price typically turn before the economy? Is it caused by supply and demand or expectation from economic indicator? For sure we know that stock price is the leading indicator, but why?

]]> By: AdamRyan http://investing-school.com/fundamentals/what-makes-stocks-go-up-or-down-in-price/comment-page-1/#comment-115576 AdamRyan Sun, 16 Oct 2011 21:53:29 +0000 http://investing-school.com/?p=29#comment-115576 This is all about Technical Analysis....U r rite, stocks go up and down based on basic supply and demand... But Fundamental Analysis also very important to choose best stock....Im using both method....Warren Buffett is the best investor in the world and one of the richest man in the world....he is long term investor,he use fundamental anaylsis method to buy stock....its does;nt matter whatever u r using technical or fundamental way to choose stock...hope u all understand what i mean...gudluck everyone.... This is all about Technical Analysis….U r rite, stocks go up and down based on basic supply and demand… But Fundamental Analysis also very important to choose best stock….Im using both method….Warren Buffett is the best investor in the world and one of the richest man in the world….he is long term investor,he use fundamental anaylsis method to buy stock….its does;nt matter whatever u r using technical or fundamental way to choose stock…hope u all understand what i mean…gudluck everyone….

]]> By: Mascu http://investing-school.com/fundamentals/what-makes-stocks-go-up-or-down-in-price/comment-page-1/#comment-106898 Mascu Sat, 10 Sep 2011 17:49:30 +0000 http://investing-school.com/?p=29#comment-106898 Dit, Volume has nothing to do with how much losses it damages to your mutual fund. So what you are saying is if the stock market drops 2% with 1,000,000 volume and another day the stock drops 1% with 50,000,000 volume. That the 1% with 50 million would hurt you more? -.- Volume is the amount of trading in that particular day with regards to the price movement. Doesn't magnify the loss or gain. 2% is 2% regardless if 1000 volume or 1 billion volume. With your regards to CNBC's comment. When you see the stock market go up with a low volume, you can regard that as a fake positive. Meaning, a small group of people are trying to move up the market. When you see the stock drops a lot with a high volume, that is a message that, this is the real negative. Alot of people are trying to pull down the market. After a market has crashed, you do not buy when the market is going up with low volume. You must have huge volume to prove that the majority of the market agree that, it's time to buy. Understand? Same with if the market is going up. Up up up up then suddenly the day ends with a negative with low volume. What does this means? The drop to negative is "fake", the whole crowd is moving up, but a small crowd started selling. Dit,
Volume has nothing to do with how much losses it damages to your mutual fund. So what you are saying is if the stock market drops 2% with 1,000,000 volume and another day the stock drops 1% with 50,000,000 volume. That the 1% with 50 million would hurt you more?

-.-
Volume is the amount of trading in that particular day with regards to the price movement. Doesn’t magnify the loss or gain. 2% is 2% regardless if 1000 volume or 1 billion volume.

With your regards to CNBC’s comment. When you see the stock market go up with a low volume, you can regard that as a fake positive. Meaning, a small group of people are trying to move up the market. When you see the stock drops a lot with a high volume, that is a message that, this is the real negative. Alot of people are trying to pull down the market. After a market has crashed, you do not buy when the market is going up with low volume. You must have huge volume to prove that the majority of the market agree that, it’s time to buy.

Understand?
Same with if the market is going up. Up up up up then suddenly the day ends with a negative with low volume. What does this means? The drop to negative is “fake”, the whole crowd is moving up, but a small crowd started selling.

]]> By: Mascu http://investing-school.com/fundamentals/what-makes-stocks-go-up-or-down-in-price/comment-page-1/#comment-106892 Mascu Sat, 10 Sep 2011 17:33:25 +0000 http://investing-school.com/?p=29#comment-106892 Cant believe no correct explaination yet. Listen up. Harry, you are correct, dont doubt yourself. When you purchase stocks of a specific company, you are entitled to the company's rights, voting rights, dividend rights, and asset rights. You are a shareholder, if the current year they earn 50 billion. And they decided to pay all that as dividend. If you have 1% of the total shares of that company, you would be entitled to 1% of that 50 billion dividend paid to all shareholders. As for all your questions about the stock price's movement versus the company's performance. No, they are not 100% directly related. Stock price like explained from the experienced experts are simply the supply and demand model. Stock prices move up when there are MORE buyers than sellers. Example 100 hungry humans wanting to buy 1 chicken each. There are only 10 sellers. 100 humans want to buy at 10$. 1 desperate seller wanting to sell at 11$. 4 at 15$. 5 at 40$. You bet your ass, by the end of the day the price of chicken went from 10$ to 40$. Too much demand and supply. You ask why? Out of the 100 humans wanting to buy, the first smart guy buys the first chicken at 11$, he is happy, he goes home. Now the 99 stares across the room at 4 chickens being sold at 15$. Better buy it fast before it's gone. I wont explain the reversed effect, you get the picture. Next, ideally, we love to think when the company is doing good, the shares would go up, when the company has a problem, the shares would drop. BUT NO. Let's say I have an urgent need to buy a new house, and I need money desperately, can I not sell my shares? Of course I can. Let's say there are 10 buyers and 10 sellers, the price is basically fixed at equilibrium. No news on the company. But I need to sell shares to buy a new house. I'll do it, guess what, I just caused the share price to drop. I will sell ALL shares at whatever prices I can get. So to sum it up, price of shares is influenced by the supply and demand model WITH factors but not limited to... company earnings, global economy outlook, personal reasons, war, government instability, abundance of money, attractiveness of other investment options, marketmakers. Those that ask when a new product is launched, why the share prices will rise. That is investor expectation, that the company's earnings will rise. Earnings per share. If a company's earnings per share is 10 dollars, and their share price is 100. What is that? 10% Earnings per share will go up or down depending on the profit of the company, let's say they introduced a new iphone, that will boost sales by 30%, making the earnings per share to 13. Guess what the new share price would be? 130. Now watch supply and demand in action. The price will go from 100-130, this is the "cheap" range, and THIS is where the smart people are buying and the dumb ones still selling. By the time the price gets to 130, the dumb ones start buying, because they see that this stock is rocketing and all the brokers start recommending them, advertisement "HOT STOCK 30% in 2 days". Price climbs to 150, the smart investors calculate this. Earnings per share 13 divided by 150 = 8.6%, too low, OVERVALUED. Starts selling em. Your question as to why sometimes a firm has a new product and yet the price drops. Because at the same time, investors are cautious because there is a war going on, the government is about to run out of money, terrorism. They feel unsafe, even though their stocks are going to be performing better soon, they still would like to get rid of all stocks. Thus = sell. Toyota having problems yet the price dont drop. What do you expect? Tomorrow toyota dissapears from the world? Big firms solve problems and get over it. During this time, the global economy is doing well, everything is recovering, investors are all smiling and happy. Hope that explains everything. And no, you dont make money by going with the crowd. You have to be that 10% who rips off the other 90%. Money dont just get created, they are earned from other people's losses. Cant believe no correct explaination yet.
Listen up.
Harry, you are correct, dont doubt yourself. When you purchase stocks of a specific company, you are entitled to the company’s rights, voting rights, dividend rights, and asset rights. You are a shareholder, if the current year they earn 50 billion. And they decided to pay all that as dividend. If you have 1% of the total shares of that company, you would be entitled to 1% of that 50 billion dividend paid to all shareholders.
As for all your questions about the stock price’s movement versus the company’s performance. No, they are not 100% directly related. Stock price like explained from the experienced experts are simply the supply and demand model. Stock prices move up when there are MORE buyers than sellers. Example 100 hungry humans wanting to buy 1 chicken each. There are only 10 sellers. 100 humans want to buy at 10$. 1 desperate seller wanting to sell at 11$. 4 at 15$. 5 at 40$. You bet your ass, by the end of the day the price of chicken went from 10$ to 40$. Too much demand and supply. You ask why? Out of the 100 humans wanting to buy, the first smart guy buys the first chicken at 11$, he is happy, he goes home. Now the 99 stares across the room at 4 chickens being sold at 15$. Better buy it fast before it’s gone. I wont explain the reversed effect, you get the picture.
Next, ideally, we love to think when the company is doing good, the shares would go up, when the company has a problem, the shares would drop. BUT NO. Let’s say I have an urgent need to buy a new house, and I need money desperately, can I not sell my shares? Of course I can. Let’s say there are 10 buyers and 10 sellers, the price is basically fixed at equilibrium. No news on the company. But I need to sell shares to buy a new house. I’ll do it, guess what, I just caused the share price to drop. I will sell ALL shares at whatever prices I can get. So to sum it up, price of shares is influenced by the supply and demand model WITH factors but not limited to… company earnings, global economy outlook, personal reasons, war, government instability, abundance of money, attractiveness of other investment options, marketmakers.
Those that ask when a new product is launched, why the share prices will rise. That is investor expectation, that the company’s earnings will rise. Earnings per share. If a company’s earnings per share is 10 dollars, and their share price is 100. What is that? 10% Earnings per share will go up or down depending on the profit of the company, let’s say they introduced a new iphone, that will boost sales by 30%, making the earnings per share to 13. Guess what the new share price would be? 130. Now watch supply and demand in action. The price will go from 100-130, this is the “cheap” range, and THIS is where the smart people are buying and the dumb ones still selling. By the time the price gets to 130, the dumb ones start buying, because they see that this stock is rocketing and all the brokers start recommending them, advertisement “HOT STOCK 30% in 2 days”. Price climbs to 150, the smart investors calculate this. Earnings per share 13 divided by 150 = 8.6%, too low, OVERVALUED. Starts selling em.

Your question as to why sometimes a firm has a new product and yet the price drops. Because at the same time, investors are cautious because there is a war going on, the government is about to run out of money, terrorism. They feel unsafe, even though their stocks are going to be performing better soon, they still would like to get rid of all stocks. Thus = sell.

Toyota having problems yet the price dont drop. What do you expect? Tomorrow toyota dissapears from the world? Big firms solve problems and get over it. During this time, the global economy is doing well, everything is recovering, investors are all smiling and happy.

Hope that explains everything.
And no, you dont make money by going with the crowd. You have to be that 10% who rips off the other 90%. Money dont just get created, they are earned from other people’s losses.

]]> By: gsdf http://investing-school.com/fundamentals/what-makes-stocks-go-up-or-down-in-price/comment-page-1/#comment-105413 gsdf Sun, 04 Sep 2011 23:04:54 +0000 http://investing-school.com/?p=29#comment-105413 Look at an equilibrium chart; if you sell something at a low price and have lots of buyers, then you will make more money the selling something at a high price and getting only a few buyers. Look at an equilibrium chart; if you sell something at a low price and have lots of buyers, then you will make more money the selling something at a high price and getting only a few buyers.

]]> By: Nbc http://investing-school.com/fundamentals/what-makes-stocks-go-up-or-down-in-price/comment-page-1/#comment-103812 Nbc Sun, 28 Aug 2011 20:35:07 +0000 http://investing-school.com/?p=29#comment-103812 For volume look at trading method called volume spread analysis. For volume look at trading method called volume spread analysis.

]]> By: Dit http://investing-school.com/fundamentals/what-makes-stocks-go-up-or-down-in-price/comment-page-1/#comment-99553 Dit Sat, 13 Aug 2011 08:22:20 +0000 http://investing-school.com/?p=29#comment-99553 Hi, I have some question and seemingly no one talk much about it. On the 4 August 2011, all stocks market went down, Down Jones went down 479.76 point with 526653000 volume, and on 8 August Down Jones was down 635 point with only 2615150000 in volume. How can Dow Jones went down more in the low volume and did make more damage to my 403b mutual funds than the day with 479.76 with high volume. According to my 403b mutual funds, I lost more on the low volume day than high volume day? I want to know how correlation between volume and up down of stocks, since often I hear from CNBC always say " today up but can not trust because there is no volume! or stocks go down with high volume so it is very bad stocks ! Thank you Hi, I have some question and seemingly no one talk much about it.
On the 4 August 2011, all stocks market went down, Down Jones went down 479.76 point with 526653000 volume, and on 8 August Down Jones was down 635 point with only 2615150000 in volume.
How can Dow Jones went down more in the low volume and did make more damage to my 403b mutual funds than the day with 479.76 with high volume. According to my 403b mutual funds, I lost more on the low volume day than high volume day?
I want to know how correlation between volume and up down of stocks, since often I hear from CNBC always say ” today up but can not trust because there is no volume! or stocks go down with high volume so it is very bad stocks !
Thank you

]]>