What Determines a Stock Price?

Stock price factor analysis refers to the prediction and analysis of factors that affect the price of a stock during a period of time.

Factor analysis of stock price

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Stock price factor analysis refers to the prediction and analysis of factors that affect the price of a stock during a period of time.

There are many factors that affect stock prices, including economic, political, and other aspects. However, as a commodity traded on the market, the price of stocks is fundamentally dependent on the internal value and external supply and demand, just like ordinary commodities. This is the common point of stock price determination and commodity price determination, the difference is that the intrinsic value of the stock is special, and the relationship between supply and demand is also special. Not only the initial investment per share, but also the microeconomic factors of the company, national and international macroeconomic factors, and sociopolitical factors determine the intrinsic value of the stock. The factors that affect the supply and demand of stocks are not only the factors that change the amount of listing, such as the listing of new stocks and the departure of old stocks. The relationship between price levels is that prices tend to rise, but supply decreases, but demand is large; prices fall, demand decreases, and supply increases. This is very different from the relationship between general commodity prices and supply and demand.

The particularity of the determinants of stock intrinsic value and the factors affecting the relationship between supply and demand. Determines the particularity of the law of stock price changes. To study the law of stock price changes, it is necessary to start with an in-depth analysis of various factors affecting stock prices. The factor that determines the intrinsic value of a stock, also known as the basic factor determining the stock price, is composed of the company's microeconomic factors, the country's macroeconomic factors, and sociopolitical factors. The factors that affect the supply and demand of Yin votes are also called technical factors that affect stock prices, or market factors, including investors' expectations of stock price fluctuations, changes in supply and demand of funds, and the behavior of large households in manipulating the stock market. The basic factors determine the long-term and medium-term changes in stock prices and are the focus of long-term investors' analysis. Technical factors determine the short-term changes in stock prices, leading to daily fluctuations. Investors who do short-term trading must always pay close attention to them. Most of them can be reflected by technical factor analysis methods, but there are always some factors that are difficult to predict in advance. of.

1 Xia Zhihua, editor. Financial environment of modern enterprise financial management. China Finance and Economics Press, 2000.9. ^[1]