Question: What Factors Affect Share Price?

However, there a number of factors that can move stocks up and down.

  • Demand and Supply. Demand and supply in the market affect the prices of shares.
  • Interest Rates.
  • Investors.
  • Dividends.
  • Management.
  • Economy.
  • Political Climate.
  • Short-Term and Long-Term Investors.

What affects the share price?

By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.

What affects the stock market the most?

Macro-economic factors such as interest rates, inflation, unemployment and economic growth often move stock markets. Stock markets are always rooting for more economic growth, because it usually means more profits for companies, and more profits tend to grow the value of stocks.

What causes share price movement?

What causes share prices to change? The main factors that determine whether a share price moves up or down are supply and demand. Essentially, if more people want to buy a share than sell it, the price will rise because the share is more sought-after (the ‘demand’ outstrips the ‘supply’).