Stocks are plummeting for many different reasons and are causing people to lose lots of money! When you buy a stock, you are purchasing a proportional share of an entire future stream of earnings. Stocks are known to rise and fall from the supply, economic reports, and company health.
Supply is the first reason for stocks falling, or rising. Whether it’s low on supply or high on supply, they both affect the economy. When the supply falls they create a higher price to reduce how many people buy the object in order to balance out the supply. When there is too much in stock they lower the price, for example, a new Toyota came out and costs 200,000. Not too many people are willing to buy an auto for that much money, and they would keep getting more of that car and running out of storage.do they drop the price down to 150,000, so they can balance the supply?
Economic reports also have to do with the economy. For example, when something is caused to shut down or we go to war, or even a neighboring country goes to war like Russia and Ukraine. When Russia went to war they were previously our main oil supply, but now that they went to war America completely disbanded from Russia, causing the oil supply to drop dramatically causing the oil prices to skyrocket.
Company health is something needed to do good. Giving crazy and unthinkable deadlines is an example of an unhealthy business. When having an unhealthy business shows everyone that it may take longer and also may not do good.
Stocks are known to rise and fall from the supply, economic reports, and company health. When having stocks you want to buy them when they are low, like right now, and wait a long time for the war to end. Then, they will begin to rise again, and will eventually grow and make a lot of money. Don’t sell them too early.