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Virtual Trader - How does the market work???
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How can i know what are the conditions for a rise of the company stocks?More precisely which factors have an impact on a company stock(positive or negative)???or it's all going through the most basic rule just buy low and wait for raise(without information)??do you understand me?what are the conditions for a rise or a fall of the company stocks?what is the reason for the change of the company prise???
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WOW, thats a question with many answers.
Internal and external factors determine a companys stock price.
Internal- is the company growing/have they appointed new management/are they making profit
external-political,eg new alcohol laws may see companies involved in alcohol, profits fall.
The weather can affect the markets, eg hurricane katrinia hit the gulf of mexico a few years back, this stopped oil production for days, affecting the oil companies.
There are hundreds, if not thousands of things that can affect the price.
Get into a company which is consitent in profit and has growth and you should profit.
Do some research on fundemental analysis, this should also help you understand a bit better.
hope this helps
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Also the price does randomly fluctuate, due to supply and demand. of the companies product and of the buying and selling of the stock
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