Stock markets are very volatile because it is affected by many things like economic news, corporate news, the country’s fundamentals, emotions and even gossips. One of the factors that is often overlook by investors are fear & greed. These two emotions are very strong that it affect the market all the time. In times where the stock price is spiking up at a long period of time without any retracements. This triggers the feeling of being left off. Most people will jump ahead because they thought the train will leave them. But they never knew that the stocks that they are purchasing are the ones that are being sold by the investors that have drove the stock up.
One of the main factors in determining a stock price is the company’s earnings. News from the company and other national and world economic events also play a large role in the direction of the stock market.
Every investor, trader and analysts have their own perception of what should affect the stock price and where it should head but you should have your own firm grounding about these elements to be a successful investor or trader.
Below we will try to list the common news that the company might receive and we will try to explain what it really do to the stock price.
This corporate act induces a lot of fear in the market but it is not always a major warning sign that the company is losing its race. Perhaps the company is just adjusting over the slow economy of the country. Moreover, it might actually be a positive for the company because it could quickly cut a huge portion of the company’s expenses.
It is not rare for companies to change CEO. People are afraid of changes and this fear also applies in the stock market. These people are afraid for any change in the management because it causes uncertainty. They have not yet seen how this CEO will manage the company but it actually show that the board of directors was bold enough to take drastic actions to grow the company in the long run.
For retail companies and other similar ones, stores are their lifeblood and if they are closing stores this is usually a bad sign. Even if closing stores may reduce the company’s expenses the process of closing stores are actually expensive. This could be a sign that the company is truly in trouble at the momet.