Friday, August 15, 2008

How Do Stock Prices Change?


Some believe it is not possible to predict how the foreign exchange assets in price while others believe that the subscription by research in the charts and the latest movements of course, you can determine at what point d ' buy and sell. The only thing we know, as some stocks that are only temporary and the prices very quickly.

Below are the main things to be seized, in this regard:

1 On the fundamental level, supply and demand on the market determine the prices.

2 Price times the number of shares outstanding (market capitalization) is a company's value. If we compare only the share prices of both companies is meaningless.

3 In theory, are the result affect what investors in valuing a business, but there are other indicators that investors use to predict stock prices. Remember that investors feelings, attitudes and expectations, in the end influence on share prices.

4 There are many theories that attempt to explain how the share price movement, as they do. Unfortunately, there is no theory that can explain everything.
Buying shares

They have now learned what a balance sheet and a little about the principles behind the Exchange, but how do you want to go even more about the stock? Fortunately, you do not go into the trading system mine crying and shouting your order. There are basically two ways to acquire storage

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