What are Ups & Downs of Share Market

Why do the stock markets constantly fluctuate?

According to the fundamental hypothesis, market fluctuations are partly caused by profits or losses experienced by businesses.

But it involves a lot more than just that. A stock is only worth what someone thinks that is fair to pay for it!

A company's worth typically increases if it generates significant profits because investors are more willing to pay more for a company's stock when it is performing well.

The value of stocks is influenced by a wide range of additional factors.

One such instance is interest rates, or the fee you must pay a bank for a loan or the fee it must charge you to retain your funds in its custody.

When interest rates are high, stocks typically decline because consumers feel they shouldn't take the risk of investing in the stock market when they can make a respectable profit by keeping their money in banks or buying bonds.

The stock market is impacted by a wide range of other variables, such as the economy.

If there is more money in circulation, more will flow into businesses, driving up prices.

Publicity and the time of year are further factors.

Many equities are cyclical, which means they perform better at certain times of the year and worse at other times.

Stock prices are affected by publicity.

It's likely that their price will rise if news reports claim that firm ABC has created a brand-new kind of paper that will revolutionize the market.

On the other hand, it's likely that the price will decrease if a report claims that the company's president is a thief who stole money from it.

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