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Question

What factors influence a share price?

Answer

Broadly speaking, share prices are influenced by news or information: new data on employment, manufacturing, directors’ dealings, political events or even the weather, all kinds of news can influence the way shares move.

You will sometimes, however, see little movement in share prices when, for example, interest rates shift.  This is because investors try to anticipate what is going to happen in the next few months and try to move their portfolios in or out of these stocks before the rest of the market catches on.  Sometimes, of course, these expectations can be wrong and if this happen, markets can move very sharply.

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