After a stock split, the stock price may go up as more people rush to buy stock at lower rates.
Why Stock Prices Go Down
Government makes stricter rules or laws that might hurt sales.
What makes stock prices go up and down? Share prices go "up "and "Down" every day because of "supply and demand ". If more people want to buy than sell a stock, this is will drive up the shares price. Conversely, if more people want to sell than buy a stock, there will be greater supply than demand, and the share price will fall.
Why Stock Prices Go Up:
· When a company buys back its own shares, the fewer remaining shares in the market tend to go up in price.
· Other stocks in the same industry group or sector go up.
· The company achieved success in growing sales.
· Company earnings are more that the prediction.
· Announcing exciting new product and service.
· More exciting products and services are expected.
· Enter into a new business with the expectation of more profit for the company in future.
· The company hires a new CEO with a proven track record of success.
· The company successfully lands a huge contract.
· An increasing number of people are purchasing the products.
Why Stocks Prices Go Down:
· Sales and profit drop.
· Lots of people are selling shares on the same day.
· Other stocks in the same industry group or sector go down.
· Someone files a lawsuit against the company.
· Negative rumors about the company.
· The company's workers go on strike.
· A natural disaster.
· A recession occurs.
· Other bad news.