What causes the stock market to be up or down?
Berto C asked:
I have an idea that it is the stock holders themselves who are the only influence on the stock market. If many people are buying stocks then the market increases, if many are selling off the stocks then the market decreases. I am right? please tell me how it works? best answer gets many points and please have some credible source
I have an idea that it is the stock holders themselves who are the only influence on the stock market. If many people are buying stocks then the market increases, if many are selling off the stocks then the market decreases. I am right? please tell me how it works? best answer gets many points and please have some credible source
Basically, you are right. It is supply and demand. If there are many buyers and few sellers, then the price goes up. And vice versa.
Stocks have value because the corporations are expected to pay dividends from their profits or repurchase the shares.
Also the shareholders elect the management.
The profits are influenced by supply and demand.
If corporations can find or make things to sell and find people to buy them at high enough prices they make profits and their stock goes up.