Factors that impacts share price?


1 Answer(s)


Demand and Supply
This is the first factor that affects share prices. When you get to see that more people are buying stocks, then there is an increase in the price of that particular stock. On the other hand price of stock falls when more people are selling their stocks. So it is very difficult to predict the Indian stock market. This is the main reason why you need to get in touch with a good stock market consultant. There is consultancy for you which can help you a lot on choosing the right stocks for you.

Market cap
It is a very big mistake when you try to guess a company’s worth from the price of a stock. You should know that the more important is the market capitalization of the particular company. This helps to determine the worth of a company. So market cap serves as an important use to determine share prices.

Earning per share
Now when it comes to the term, “earning per share”, it means the profit that a particular company has made per share and that too on the last quarter. If you need to know the health of the company then this is the most important factor. What’s more earning per share also influences the buying tendency in the market that results in the increase of the particular stock price. This is the reason why it is very important for every public company to bring out the quarterly report. So when you wish to make a profitable investment, then the best thing for you would be to keep a good watch on the quarterly reports of different companies. This is very important before you wish to invest your hard earned money in the share market.

Impact of news
News is another factor that affects the share price. When there is positive news about a particular stock or company, people try to invest all their money in that particular stock or market. This leads to increase in the interest of buying the stock. But there are many circumstances where news could also bring a negative effect where it could ruin the prospect of the particular stock. So it is very important to know the overall news of a stock or company where you can invest your money so that it grows within a very short period of time.

There are many things that you need to consider when you go for investing your hard earned money in the stock market. You should never be in a haste to invest your money in the stock market. You should always get in touch with a good stock market consultancy where it can give you some share tips. They are the one who can give you advice where to invest your money and where not to. They know to distinguish the good stock from the bad ones.