What drives Stock prices?
Dear Friends, I'm sure everyone knows what a stock market is right. But, I will tell you very few know what drives Stock prices. Let me explain you briefly. In the market, price is decided between buyer and seller. If the price has to rise, buyer shall be ready to pay higher price for seller. Someone is ready to pay higher price because he understands the economic value of the company, intrinsic value of the business. Ex: Escorts Ltd was trading in the range of 50 to 70 rupees during 2012-13. Today it trades at 1300 rupees!!!. Fundamental reason for this rise is rise in company's tractor sales. Look for company whose products are going to have bigger market penetration and higher customer acceptance and satisfaction. I hope you find this article useful!!