Economic Factors Affecting Stock Markets

Richardwilliam09 Dec, 2024Business

Stock prices are also impacted by incidental transactions, such as fund managers' window dressing or year-end tax sales. Uncertainty and volatility may be introduced by trade conflicts and changes in economic policy, while supply and demand mismatches in the stock market cause price swings. Stock prices fluctuate as a result of natural disasters upsetting economies and sectors. Exchange rates and deflation have an effect on corporate profitability and competition, which affects both individual stocks and the whole market.