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Why share price go up and down?

Share prices fluctuate based on supply, demand, company performance, and market conditions.

Share prices in the stock market are driven by supply and demand. If more people want to buy a stock, its price goes up (because of high demand). If more people are selling, the price goes down (due to oversupply).

Several factors influence these movements:

  • Company performance: If a company is doing well (high profits, growth), its stock price goes up. If it’s underperforming, the stock price drops.

  • Economic conditions: Inflation, interest rates, and overall economic growth can affect how companies perform and, therefore, their stock prices.

  • News: Positive or negative news about a company, sector, or economy can lead to a rise or fall in stock prices.

  • Global events: Events like wars, pandemics, or global financial crises can have a major impact on share prices.

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