Shares/Stock How to Understand Stock Market Performances

[Jasmine]

Market performance is about how the stock price moves up and down based on buying and selling. If lots of people are buying the stocks, the price goes up. If lots of people are selling, the price goes down. People buy stocks when they think the company will make a profit soon, and sell when they think it might lose money. The stock price also reflects how well the business is doing. If the company is doing well, the stock value goes up. So, when you're buying stocks, make sure the company is making a profit. You need to understand the company’s financials before investing.

 

[Ganibade]

When thinking about buying stock, it is crucial to assess the company's financial standing. The level of market demand dictates the growth or decline of stock prices. Prices increase as more people buy, and decrease when more people sell.

In general, investors buy equities when they think a business will be profitable and sell them when they think it will lose money.

The stock price of a firm is a good indicator of its performance; a successful business usually sees an increase in stock value. Therefore, thoroughly examine the company's financial accounts before making an investment to ensure profitability.

 

[Suba]

If we talk about the stock market, it means we are talking about the totality, accumulation, resultant and overall performance of each share traded on the stock exchange. But in a narrower sense, investors often interpret stock performance as stock returns within a certain period of time, be it daily, weekly, monthly or quarterly and each investor will of course have their own standards for determining and analyzing their stock performance.

You need to know, in evaluating the performance of a stock we don't just focus on price fluctuations, from time to time. There are many factors that you need to test or evaluate, such as government policy, interest rates, inflation rate, level of investor confidence or Fear and Greed index etc. Investors can evaluate stock performance using the composite stock index and also need to evaluate competitor stocks, namely stocks issued by similar companies.