Question

After buying the stock, why would the share cost decrease? I can understand that the share unit changes and the market value changes, but when the shareholder does nothing, why does the share cost change?

I read the press release of some companies and it didn't clearly write how much the cost of the stocks already held will be reduced so that the investment statement has no cash flow changes at all

Answer 1

After purchasing the stock, the share price will be decreasing because-

A. These can be decreasing due to overall correction in the larger index.

B.share prices can also decrease due to changes in the demand and the pattern of the companies structure

C.it can also decrease after any adverse event happened in respect of the company which will be decreasing the profitability of the company

D. Lower quarterly earnings has been reported by the company

E.the company is trading at Higher valuation and it is correcting at the current juncture.

F. The company has defaulted on its payments of debt and it is going down