May I ask about stocks? What do stocks mean? What factors determine the rise and fall of stocks?
Stocks, in the vernacular, are certificates that prove that you own part of the ownership of a company, so you can attend shareholder meetings, vote, participate in major decisions, and share in the operating profits of a listed company.
Stocks have five characteristics: non-repayability, participation, profitability, liquidity, price volatility and risk. Stocks are securities with no repayment period, and stock holders usually realize their rights by exercising shareholder participation rights. Shareholders have the right to receive dividends or dividends from the company and obtain investment income based on the stocks they hold. As a trading object in the trading market, stocks, like commodities, have their own market conditions and market prices.
The rise and fall of stocks is determined by the following factors.
First, the market environment, that is, whether the stock market is a bull market or a bear market, this is very important. The market environment is very important for most stocks. , is the most important factor affecting the stock price. In a bull market, stocks are more likely to continue to rise, and in a bear market, stocks are more likely to continue to fall.
Second, the trend position of the stock. If a stock rises sharply, the bottom chips of this stock will make huge profits, and there will be a very strong willingness to sell and settle for safety. At the same time, there will be few investors. Be willing to buy top stocks that have risen sharply. At this time, such stocks are prone to falling.
Third, stock fundamentals, which not only refers to the current performance of individual stocks, but also refers to the future performance of individual stocks. Stocks with high certainty of high growth in the future are easy to rise. Simply put, the market prefers stocks with good future performance. stocks with performance expectations.
Fourth, various important industry development plans, policy information, etc. If there is industry development, planning and policy information that is good for individual stocks, of course individual stocks will be more likely to rise.
Fifth, if large funds continue to buy a certain stock, it will undoubtedly cause the stock price to rise sharply. Similarly, if large institutional investors directly sell individual stocks, the stock price will also fall under pressure.
Sixth, various extreme natural weather, disasters, etc., such as major earthquakes, if the listed company is located in an earthquake-prone area, the stock price will fall. For example, affected by weather or earthquakes, some When there is a shortage of resources, the prices of related resource stocks will rise.
In short, in addition to the above reasons, there are many factors that affect the rise and fall of stock prices, such as wars, various economic data, economic policy information of various countries, etc., which will also bring various degrees of fluctuation to stock prices. Influence.