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How does the stock market relate to the unemployment rate?
The stock market is not directly related to the unemployment rate of a country. But when the employment rate in the country is high and the economy booming, usually the stock market goes up consistently. This is because people have a lot of money and they invest in stocks and stock market instruments.During recessions and economic hardships there is a lot of unemployment and lack of liquidity. During such times the stock market goes down because people withdraw their investments to meet their cash requirements.
If the market risk premium were to increase everything else beign equal the value of common stock would do what?
Value of the common stock will go down.As market becomes riskier market participants adjust expected risk premium and start to demand higher returns, consequently they begin to sell stocks as they do not satisfy their newly adjusted expected risk premium. As a result stock price goes down.
Why did Americans invest their money in the the stock market?
The stock market has generally been a good investment. It goes up and it goes down, but in the long term it goes up. Lots of people have profited from their investments in the stock market, even though sometimes people lose a lot of money if they make a particularly unwise investment. Remember that people who have large amounts of money need to invest it in something. If they just keep wads of currency in their safe, it will gradually lose value due to inflation. Money has to be well invested, just to retain its value.
Why do share prices goes up and down?
Stock share prices reflect the current price of a publicly traded company in the stock exchange, every second of the trading day. The price you see is actually the last transaction made for this stock and it is influenced by many factors such as news, expectations, market conditions, and fluctuations of supply and demand.
What is it called when the value of currency goes down called?
it is called deflation
What goes up and down but don't move?
A stock market, it goes up and down but never move
How can you lose money in the stock market?
In a bear market your stock value goes Ka-flop.
Why was it a problem if the stock market went down?
When the stock market goes down, the unit price of the shares held by you will be lesser, may be even that of the purchase price, resulting in monetary loss.Those having experience in stock market, hold them and wait for the opportune moment so that their shares may fetch a decent price.
How does the stock market relate to the unemployment rate?
The stock market is not directly related to the unemployment rate of a country. But when the employment rate in the country is high and the economy booming, usually the stock market goes up consistently. This is because people have a lot of money and they invest in stocks and stock market instruments.During recessions and economic hardships there is a lot of unemployment and lack of liquidity. During such times the stock market goes down because people withdraw their investments to meet their cash requirements.
What market is it when there is a rise or expected rise in stock prices across the entire stock market?
The Stock Market index is the overall number that signifies the consolidated status of stocks. each stock that is listed in the exchange has a different weightage. The index is the weighted average of the price of all the stocks. when the price of the stocks in the index go up the index value goes up, similarly when the price of the stocks in the index go down the index goes down. A __bull___ market is when there's a rise or expected rise in stock prices across the entire stock market.BULL : )
A what market is when there's a rise or expected rise in stock prices across the entire stock market?
The Stock market index is the overall number that signifies the consolidated status of stocks. each stock that is listed in the exchange has a different weightage. The index is the weighted average of the price of all the stocks. when the price of the stocks in the index go up the index value goes up, similarly when the price of the stocks in the index go down the index goes down. A __bull___ market is when there's a rise or expected rise in stock prices across the entire stock market.BULL : )
What is the relationship between the stock market index and individual company share prices?
it is a kind of disjoint parallel or direct relationship. When the stock market index goes up, the stock prices go up and when the index goes down the individual company stock prices come down. But there may be companies whose prices are going in the opposite direction as compared to the stock market. Just because the stock market is going up it doesn't mean that all company stock prices are going up.The stock price of each and every company is governed by a variety of factors and may move in either direction irrespective of how the overall market is going.
What is it that goes up and goes down but does not move?
A flight of stairs. Temperature A Staircase
How does the stock market raise and lower?
The price of stocks is determined by the Demand and Supply theory. When there is a heavy demand for stocks and the supply is less then the prices go up. When there is a heavy supply of stocks and there is less demand then the prices go down. When the price of stocks goes up, the market goes up and when the price of stocks go down the market goes down.
How did the stock market change?
Stock market prices change based on market forces. When a buyer and a seller agree to trade, a trade takes place. The price at which the trade is made becomes the new stock market price. More demand causes stock prices to go up, and less demand or large shareholders selling, causes a stock price to go down.
Is the investment of mutual funds risky?
Yes they are. Since mutual funds invest in the stock market they carry the same risk that stock market has. If the price of stocks tumbles due to some reason, the value of a mutual fund goes down and hence our investment worth also goes down. Certain type of funds like debt funds and balanced funds do not bear the brunt of a stock market collapse but they suffer losses too, during an economic crisis.
What does it mean if your stock volume goes up or goes down during an analysis?
If your stock volume has risen recently that means that there is a lot of trade activity currently going on with your stock. If it goes down it means the opposite and the price of your stock is staying the same.
