If you watch the market, prices seem to move nonstop. That can feel chaotic — but there’s a simple reason behind it.
The short answer:
Stock prices change every second because people are constantly placing buy and sell orders.
What’s happening behind the scenes:
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Buyers say: “I’m willing to pay this price.”
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Sellers say: “I’m willing to sell at that price.”
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The stock’s price updates whenever a trade happens.
Why those prices change:
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New information (earnings, news, data)
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Changing expectations about the future
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Large institutions adjusting positions
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Short-term emotions and reactions
Important perspective:
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Most second-to-second moves are noise, not meaning
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Long-term prices follow business performance, not momentary trades
For long-term investors, the movement matters far less than the direction over time.