InvestorQ : What are the factors affecting/ influencing stock prices?
Suhani Mirza made post

What are the factors affecting/ influencing stock prices?

Answer
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Allysin Pinto answered.
4 weeks ago


Initial Public Offering (IPO) is what the company stock is valued at when it's first sold. This value is determined by investment banks based on the company's portfolio. Investment banks are a bridge that connects the investor with the company. With increase in market demand, the price of the stock increases. This is dependent on how many buyers vs. sellers are dealing with the company's stock.


When the sellers are more, the stock value falls. The demand for the company's stocks are less which is why the buyers are less. But if the people selling are low and the buyers are more, the stock price rises. Sellers have a limited amount of stock, for which they can demand any price. The buyer would have no option but to pay the price asked.