Chapter 6
Why Stock Prices Rise and Fall
IN THIS CHAPTER
Finding out how a company becomes a stock
Digging for online data that might affect a stock’s price
Finding academic studies online and profiting from them
Reading quarterly earnings statements online
Getting a handle on economic data
Gaining insights from long-term successful investors
Investors often wonder why bad things can happen to shares of “good companies.” It’s common for a company to report seemingly solid news, such as sharply higher profit, and its stock will fall anyway. It doesn’t seem right to many investors who expect markets to be logical. Sometimes, especially in the short term, markets don’t do what you’d expect them to. This chapter answers the burning question you and many investors might have: “Why do stocks rise and fall?” It’s a two-part answer because one set of forces causes stocks to move in the short ...
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