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Sunday, March 4, 2012

Important Factors which Affect Stock Prices


Major factors that affect stock price are many and studying these factors systematically is very essential for all those who are involved in stock trading or stock investing. The volatile nature of most markets makes it sometimes difficult to analyze the exact reasons for various kinds of movements. Inventing smart intraday trading strategies successfully is possible only after being aware of the factors affecting stock price.
Stock market is something where you can never foretell what is going to happen in the market. You might get huge gain or incur losses when the stock market crashes. There are many factors affecting share prices. It is very hard to say just one or two factors affect the share prices. So, let us have a look at the factors that affect share prices.
Company Performance
Investor Behavior
Economic Growth Data
FII Behavior
Political Conditions
Valuations of Stocks
Demand and Supply
Market cap
Earning per share
Impact of news
Dividend Effect
Bonus share issues
Warrants exercise
Interest Rates
We will discuss each factors in detail in next article. Do post your views.


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