Question

What does it mean if price of stock doesn’t change too much only few changes across...

What does it mean if price of stock doesn’t change too much only few changes across the year ?? Is that good for investment ?? Also what is an announcement of a stock’s corporation and if I found some in the stock market are they important when I want to comment about the slight change of stock’s price???

Homework Answers

Answer #1

When the price of the stock doesn't change much, it implies that there is no trading in the stock. In simple words there is no supply or demand of the stock or no one is selling or buying that particular stock. Apparently this stock is not a good investment as it has no supply or demand and it would be difficult for you to sell the stock in the market(because of a lack of a ready market). Also, as the price doesn't change, most probably there wouldn't be a good return on the stock(because the major return is from the capital gains).

Yes, the announcements about the stock from the stock's corporation is an important consideration when buying or selling(or giving recommendations or commenting(as in your case)) a stock as based on this information(and other rumours) the prices of the stock changes.

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