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Corliss Group Online Financial Mag Share features explained<br />
Source: http://corlissonlinegroup.com/share.html<br />
The phenomenon of share prices moving up or down is a dynamic process worth<br />
looking into and understanding in order to appreciate what is happening and how it<br />
affects one’s investment. The website attributes the movements to “supply and<br />
demand” – the ubiquitous main players in the whole economic or business world.<br />
And so, a share price goes up when certain conditions are present. Let us discuss them<br />
one by one. “When a firm is making big profits”, the demand for it goes up and the<br />
price follows suit. Obviously, people would want to become part owner of a company<br />
that is making it big. But who decides the price should go up? The company or the<br />
market? The website does not explain further. Perhaps, it is a secret or an unnecessary<br />
information for the investor. Really? We all have the right to know.<br />
The second reason is that “many people want to buy the shares to get the rewards of<br />
the profits.” This is not so obvious a reason as the first. It seems similar or the very<br />
same first reason above. This probably applies to companies that are already highly<br />
valued.<br />
Third, “few people want to sell the shares.” Again, this is merely the reverse of the<br />
second and which could be a result of the first reason. We seem to be going around in<br />
circles here. So far, we only have one viable reason for prices to go up.<br />
Last reason provided is “only a few shares are available to buy.” Now, that looks like a<br />
different reason. But then again, it an indirect result of the first reason.<br />
Looking at the other side of the picture merely presents a mirror image of what we just<br />
went through above. In short, supply and demand, even for shares, totally depends on<br />
the profitability of companies. Nothing more.<br />
One wonders if this simple survey of the stock market is overly simplistic or is it that we<br />
can look at the whole process as a simple one and that somewhere the complexity is an<br />
artificial characteristic that is manufactured to confuse or deceive people? And the plot<br />
thickens.<br />
Read more articles of Corliss Group:<br />
http://corlissonlinegroup.com