FACTORS AFFECTING STOCK PRICE

Stock market the best place for investors. Before investing in market a keenly survey of the whole market should be taken. As no one predict the market correctly, so we need to know the functioning of stock market. So let’s discuss some major factors that affect stock price in the market.

1. The Stock’s Demand and Supply -  If you are using an online trading account, then you should know about the volumes of shares bought and sold during a trading session. If there are more buyers of a particular commodity, then it results scarcity which affects the price of commodity
2. Market Capitalization of a Company - To understand the company capitalization, the right way is to find the company worth. The capitalization of a company is the main indicator in finding the stock price.
3. The Earning of Stock Per Share - The profit of a company can be detected by the earning made per share. The EPS is one of the good indicator to measure company’s performance as wells as its financial status.
4. Market/Company News - It is advisable to stay clear of speculative news which aims either to break the price or inflate it.