Investing in stocks requires an understanding of the various factors that affect stock prices. These factors may be intrinsic to the company itself or part of the external environment.
Internal factors relate to the company itself, such as an announcement of poor or favorable earnings, earnings that are more or less than expected, major layoffs, labor problems, new products, management issues, and mergers.
External factors relate to world or national events, such as wars, recessions, weather conditions that affect sales, the Fed’s adjustment of interest rates, and employment figures that are higher or lower than expected.
By analyzing these factors, you will often learn a lot about why ...