Stock prices are determined by supply and demand ⚖️
Supply is what’s available and demand is how much people want 🤑
So, if a lot of people want to buy a stock, the price may go up. 📈
If a lot of people want to sell a stock, the price may go down. 📉
Prices change based on how investors think a company will perform 🤝
When investors buy a stock, they are essentially betting that the company will be successful and the stock price will increase. 📊
If they are right, they will make money. 🤑
Good news, like product launches or impressive profits, can drive the stock price up 🆙
Negative news, such as a recall or a decrease in profits, may drive the stock price down 📰
For example, if Apple releases a new Macbook, the stock’s demand may be high and the price may increase. 🤔
But, if Apple announces layoffs or product recalls, people may doubt Apple’s potential and the stock price may decrease. 🍎
So, now you know that stock prices are determined by the supply and demand generated by investors, just like yourself 🥳