Australian (ASX) Stock Market Forum

Factors impacting on stock prices?

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12 May 2006
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Hey guys,
I have been trading for a while now however still a rookie and learning. As I understand some of the members on this forum are experts with years of experience. The questions being asked is what are the impacts on stock prices from general announcements on companies? I do understand this is a broad questions but I would just like to get some insight into the variables involved that affect the stock prices.
Any help would be much appreciated!
Thanks
 
Re: Impacting on stock prices

Hi Ko Ko,

I certainly dont come under the expert or experienced trader banner but i do usally keep an eye out on price action of various companies after a big announcement. It all depends on what the announcement is. Alot of investors do get their 'Hot Tips' from the either the finance news or the newspaper or ASX announcements so after an announcement you can certainly get more buyers/sellers coming in. Something i read a while ago was that an announcement is something that has already happend so quite often the news is already built into the price by the time the news is announced. I dont mean speculative news either.
Really it all depends on what the news is, how people interpret it and then if its good news and adds more value to the price then its up to what people are prepared to pay for it.

hope this makes somekindof sense :)
 
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