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What affects the price of a stock? I know a lot of it has to do with how well the company is making profits but what else will make the price of a stock go up or down?

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3 Answers

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The expected future cash flows. In other words, the earnings and the riskiness of those cash flows.

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Many things can affect the price of a stock.

  • Company News
  • The number of shares that have been issued for the stock
  • The general economy
  • Changes in interest rates
  • Analysts' Target prices
  • Inflation
  • If it is considered "popular" by Wall Street
  • Fear and Greed
  • Chart patterns
  • Earning per share for the company
  • Oil prices
  • Price to earnings ratio
  • World News
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A lot of things can affect the price but it is how those things will affect the future growth of the company. That future growth in profits is what will be reflected in the price of the stock.

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