What causes stock price to move?

Stock prices are determined in the marketplace, where seller supply meets buyer equilibrium. Generally, stock prices fluctuate by factors such as supply and demand, the company’s performance and profitability, economic, and political factors, and market sentiment.

Stock prices are driven by a variety of factors, but ultimately the price at any given moment is due to the supply and demand at that instant. Supply is the total amount of a specific stock that is available in a market, while demand is the total amount demanded in the market for that stock. Low supply and high demand will push up the stock prices, whereas high supply and low demand will produce a contrary result.

The financial report: the disclosure of a company’s annual report, semi-annual report, and quarterly report often bring fluctuations to its stock prices because the reports contain the company’s performance, profitability, and prospects of the company within a specific period. If the reports indicate that the company is performing well or that its sector is expected to grow, investors are more likely to purchase its stock shares, demand for its stock shares increases, and the stock prices rise accordingly.