What Drives Stock Prices
What drives stock prices? It seems like there is some confusion about this. Some people might be shocked when they see a stock fall on great earnings, or vice versa. That is because stock prices are not directly linked to the companyâs profit. If a company makes a 20% return on their capital it does not mean that the stock will also go up 20%. What does move a stockâs price is something called supply and demand. If more people want to buy the stock then sell it then the s