A stock’s price moves because of supply and demand.
When the price goes up:
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More people want to buy than sell
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The company reports strong earnings
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Future growth looks better than expected
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The overall economy or industry improves
When the price goes down:
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More people want to sell than buy
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Earnings or outlook disappoint
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Costs, competition, or risks increase
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The market or economy weakens
Important to know:
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Prices move on expectations about the future, not just today’s results
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Short-term moves can be emotional or noisy
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Long-term prices usually follow business performance