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Section: 8 What Influences The Share Price Movement?
It is important to know as an investor the underlying reasons for the price
behavior of stocks. In general, stock prices change due to market forces i.e.
demand and supply. If more people want to buy a stock and proportionately less
investors are willing to sell, then the price of that particular share will
go up. The most important question is what makes investors seek buying or selling
a stock. The answer for this question is not straightforward and there are a
number of factors that influence stock price movement.