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What Factors Determine Current Stock Market Prices?

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  • Written By: Susan Grindstaff
  • Edited By: Heather Bailey
  • Last Modified Date: 17 October 2019
  • Copyright Protected:
    2003-2019
    Conjecture Corporation
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A host of factors might impact current stock market prices, but the primary influences are typically earnings of a particular stock, new products being offered by the company, and expert valuations. In addition, corporations involved on either end of a takeover will typically see a rise or fall in the market value of their stock. Current stock market prices are also commonly affected by “acts of God.” For instance, during hurricane season, stocks involving building supplies will usually go up.

Stock values will generally rise and fall depending on contracts won or lost by any given company. Winning government contracts can result in a very large boost in any company’s stock value, and losing one can have the opposite effect. Another influence on current stock market prices is how well a specific industry is doing over all. An example of this would be when home computers first became readily available, many different stocks benefited from the technology.

Trends within the stock market are sometimes described as “bull” markets or “bear” markets, and they often influence current stock market prices. This is often referred to as market sentiment. In a bull market, a lot of buying is going on, whereas in a bear market, investors are holding onto their money. This activity or lack thereof can have a very large influence on stock prices.

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Earnings of any given stock are perhaps one of the biggest factors that affect current stock market prices. This is considered a “big picture” evaluation, and investors will commonly take a long look back at past performance and measure it against what the stock might do in the future. The influences and earnings of a stock on any given day are not considered to be as important as overall earning potential and stability.

In many instances, insider trading is considered illegal, as it is based on unfair advantage, however, these trades can often affect current stock market prices. If trends seem to indicate that people inside or close to any given corporation are buying or selling, this activity can start a market trend for any stocks associated with the sales. Insider trading is carefully monitored by agencies such as the U.S. Securities and Exchange Commission.

Current stock market prices often have more to do with the future than the present. Investors are always looking to the future to try to get ahead of other investors. They will typically take into account things like new product development or scientific breakthroughs. In addition, they will carefully examine any upcoming government legislation, as new laws and regulations often can have a huge impact on current stock market prices.

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