Stock Movements

This paper would seek to evaluate the reasons as to why the stocks movement takes place and the reasons as to the fluctuations of the stock over time.

According to the trading volume law, the volume of trading volume is always more during those periods of heavy market volatility. During these periods, the stocks are being bought heavily and hence, the heavy traffic of stocks trade.The uncertainty and speculation of people results in the variations of trading stocks and prices of this company the prices change due to the behavior of the opportunists and those who perceive them with an element of doubt. Also, any factor which causes a run up in volume which will also affect the price of the stock as those who value the stock highly will price the stock more than other stocks which are priced less.This paper would examine the stock movements of some of the leading corporations such as Intel, Garmin, Costco, Dell, and E-bay. Some important issues are overcomplicated by the investors such as the fact that supply and demand is the major foundation blocks upon which the financial markets are build upon. Macroeconomics and external environment does have a role but in actuality, the stock’s movements are decided upon whether enough buyers are and what would be the trading price.

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If one was to analyze this in the case of Intel what would come across is the fact that over the last few years, the demand for the Intel Stocks has been pretty low and hence, the stock has witnessed a movement or series of lower highs and lower lows as well. This hints at the fact that the demand has been declining and the supply movements have been aligned with these expectations. However, in the recent past the stock levels have improved in their trade volumes hence, the higher highs and the higher lows. Therefore, as a result of the rising demand levels the stockholders are no longer willing to part with their stock and hence, the depressive tone of treading has been eliminated.In the case of another company; E-Bay, the stocks have been dropping rapidly and a number of reasons have been nominated as the causes for these lows.

While some argue that the major cause has been due to the lack do investor confidence amongst the buyers as result of the rampant counterfeit levels taking place on the website.Hence, since the confidence of the buyers is low and since they play a major role in the trading volume, therefore the trading volume has declined sharply. The fact that a number of organizations are suing the website’s owners has further decreased the company’s position on the market. Therefore, unless the company is able to build back some trust, it would be hard for the owners to convince the buyers.Dell; the commodities have become more of a speculative gamble and hence, the volatility of the stocks has risen substantially. Commodities are also more sensitive to the money flows as the trading has become much more easy and flexible.

Therefore, for companies such as Dell the volatility of trading has risen substantially over timeGarmin which is currently undervalued and which is within a good margin of safety and hence, the company’s prices have decreased over time. However, at the same time there is expectation of the company doing well in the future and hence; this stock’s volatility is pretty high.The last organization which would be reviewed for the purpose of this paper would be Costco which is identified as and organization which treats its workers better than the others and who are renowned for their profitability but at the same time, their prices are priced low due to their extensive focus on forsaking profitability for other purposes at times.Hence, the above paper reviewed the trading volume of these organizations which reflected the way their prices have fluctuated over time. Referencehttp://dailyreckoning.com/stock-movement-predictions/ 

Author: Rufus Hunt

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