Stock-Market-Analysis

• A stock is the small chunk of ownership in the company. The stock price of the company reflects the net evaluation of the company and also gives a little insight into its performance. These stocks are traded on exchanges and their prices are constantly changing due to their demand and supply in the market. If a stock is in high demand and low in supply i.e. more people want to buy it and fewer people are willing to sell it then the price for the stock will go up and similarly if the stock is in low demand and high on supply which means people more people are ready to sell it but fewer people are willing to buy it then its prices go down.

• The sudden increase in the demand for the stock can be due to various reasons including positive news about the company or an announcement from the company. After a period of time when the demand for the stock vanishes its prices slowly creep down as the investor loses interest in it. These stock prices going up and down is an iterative process and repeated. This volatility of stock makes investors nervous while investing in a company. So to understand the risk associated with it there must be a proper analysis of stock before buying it.