Friday, October 7, 2011

Investing - Stocks Ups and Downs

There's a lot to learn when you invest in shares of stock. First, you need to expect the prices of those stock shares to go up and down. They will --- often every day! Here are some of the many reasons why a stock price will increase or decrease:




  • increase or decrease in sales or profits

  • change in corporation's management

  • change in products or services

  • a famous investor buys or sells shares of stock

  • a well-known analyst upgrades or downgrades their evaluation of the company

  • research reveals something good or bad about the corporation's products

  • the corporation wins or losses a lawsuit

  • a lot of people are either buying or selling their shares

  • the stock market is either up or down

  • positive or negative media coverage toward the corporation

  • rumors
Volatility refers to how much a stock's price tends to jump up and down from day to day. Some stock have more volatility than others. Sensible investing takes time to see results. Investing in stock takes long-term thinking.

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