Stock Price Movements
@cuboidtrilogy (74)
India
March 11, 2009 1:27am CST
I can't figure out the reasons behind the following:
What are the reasons and implications of an increase in the traded volumes of a particular stock and the decrease in its prices? And Vice Versa.
Its important for me know...so if somebody can guide it will be highly appreciated
1 response
@scheng1 (24649)
• Singapore
11 Mar 09
Stock market is a reflection of investors' sentiments. There are many factors that can influence investors' sentiments.
1. The view that investors held over the economy of the country and its government. Whenever a high ranking government officer said something negative, nearly all the shares prices dropped. Because investors over-react to fear. It may also be that investors lost confidence in the government to take action.
2. The news of a particular sector. If one listed company in the manufacturing sector goes bankrupt, you can expect all the companies in the same sector or related industries also suffer a huge drop in share price.
3. Manipulation. Some big institutional investors or government investment arms do manipulate share prices by block buying or selling. Usually the target is a particular company, but all the shares in the same industry will follow the trend.
4. International influence. In this crisis, whenever Wall Street falls, the stock markets in the whole world fall.
