Why are the fluctuations in the stock market?

The stock market is something different. The prices are changing all the time; in fact, the price fluctuation is here the only constant factor. Come let us try to understand it. Consider pricing or pricing theory of economics that the price is fixed at a level where the demand is matched by supply. On one side, there is a fixed supply of stock because the company cannot increase or decrease the number of shares each ever. But profits for shareholders who are looking for opportunities when they can hold bench. Such people get the best price, and then they would get from the company.

Demand-side look at the many events that happen in the economy and the industry in which the company's stock at a particular price to attractive. So we have a lot of buyers who want to buy shares of a particular company. Technology is now possible due to the continuous second-by-second demand - supply to be matched. Demand - the balance between supplies keeps constant changes in share prices. The purchases prices will improve to some extent become a point of balance between the takers and sellers.

The next logical question is whether the performance of the company is changing perceptions about the minute-by-minute? If the answer is no. Based on the facts of a particular investor holds the same opinion, but not necessarily hold the same opinion.

The purchases prices will improve to some extent become a point of balance between the takers and sellers.

The funny thing is that while the price fluctuation purchased own sales give rise to action. Some participants in the market that are trading Jobbers and Scalpers finger running fast on the price movements by analyzing price difference very soon to take advantage of the frequent purchased - go on sale.

But tens of millions of people working in the stock market and sought powers for them is a part of life. Prices in very efficient screen-based trading anything but them will not be. Maybe that pot of gold is waiting for you.