Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
What are some analyzes we can do to predict which stock will go up?
Expert Solution
Step 1
Stock price movement is primarily speculative in the short term (two to three months). The price rises as the number of purchasers increases. When there are more buyers than vendors, the price drops. The corporation publishes quarterly or annual reports. The stock price will rise if the results are positive. If the results are negative, it could lead to a drop.
However, in the actual world, the factors that influence the price of a stock are more complicated. It is determined not only by the company's fundamentals, but also by a variety of other elements.
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