What makes a share price move?
Working Paper 2538. DOI 10.3386/w2538. Issue Date March 1988. This paper estimates the fraction of the variance in aggregate stock returns that can be attributed to various kinds of news. First, we consider macroeconomic news and show that it is difficult to explain more than one third of the return variance from this source. Second, to explore ...
What makes stock price move up and down?
Sep 27, 2021 · What Factors Move Stock Prices? Nearly any and all daily happenings can influence stock prices. The market, after all, is a reflection of how companies and industries are valued in our society....
What drives stock price movements?
2 instockpricesislargerwhenthestockmarketisopenthanwhenitisclosed, evenduringperiodsofsimilarinformationreleaseaboutmarketfundamentals. ThispaperfollowsRoll(1985 ...
What factors affect stock price?
Apr 27, 2000 · What Moves Stock Prices? NBER Working Paper No. w2538. 29 Pages Posted: 27 Apr 2000 Last revised: 10 Dec 2021. See all articles by David M. Cutler ... casts doubt on the view that stock price movements are fully explicable by news about future cash flows and discount rates. Suggested Citation: ...
What causes stock price change?
Stock prices change everyday by market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up.
What moves the stock market the most?
Simply put, supply is the number of shares people want to sell, and demand is the number of shares people are looking to buy. When there is a difference between these two groups, the prices in the market move; the greater the disparity between demand and supply, the more significant the move will be.
Should I buy stocks when they are low or high?
Stock market mentors often advise new traders to “buy low, sell high.” However, as most observers know, high prices tend to lead to more buying. Conversely, low stock prices tend to scare off rather than attract buyers.Feb 9, 2019
How do you tell if a stock will go up or down?
If the price of a share is increasing with higher than normal volume, it indicates investors support the rally and that the stock would continue to move upwards. However, a falling price trend with big volume signals a likely downward trend. A high trading volume can also indicate a reversal of trend.Dec 6, 2011
Published Versions
The Journal of Portfolio Management, Vol. 15, No. 3, pp. 4-12, (Spring 1989).
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Lawrence H. Summers
This paper estimates the fraction of the variance in aggregate stock returns that can be attributed to various kinds of news. First, we consider macroeconomic news and show that it is difficult to explain more than one third of the return variance from this source.
Abstract
This paper estimates the fraction of the variance in aggregate stock returns that can be attributed to various kinds of news. First, we consider macroeconomic news and show that it is difficult to explain more than one third of the return variance from this source.