Why Stock Prices Move

Why do stock prices move?

Stock prices and the market as a whole move up and down all the time. Anything from a new product launch to recent media coverage, or even a politician’s tweet, can change how people feel about a company. As people’s long-term views change, they may buy or sell stock, which in turn may change a company’s stock price.  

For example, when Amazon announced they were buying Whole Foods, their stock price went up.

So, what’s the strategy?

Long-term investors don’t get caught up in the day to day movement of the market.

When you see prices move, it’s a great opportunity to see what news may be impacting a particular company or the market as a whole. As you learn more over time, you can continue to re-evaluate your long-term view of a company.  

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