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| About the markets... After a company issues stock at the primary market (IPO), the shares are traded at the secondary markets, and especially on exchanges which are places where buyers and sellers meet and bargain for a price. The most famous stock exchanges are the New York Stock Exchange, the NASDAQ, Euro next, Hong Kong stock exchange, London Stock Exchange�etc In general, when stock prices move up, a Bull market occurs, and when prices fall we are in a Bear market. Demand and Supply determine a stock�s price. Usually, the price increases if more people want to buy a stock than sell it and decreases when there is a greater supply than demand for a given stock. The demand and supply are themselves driven by earnings expectations: if a company's results are better than expected, the price jumps up but if they are worse than expected then the price will go down. However, earning isn�t the only determining factor for price change; there are other much more complicated reasons like outside events (political shifts, terrorist attacks�etc). Next section: Initial public offering Go back |
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