What Factors Are Behind Stock Market Fluctuations And How Do They Impact
What factors are behind stock market fluctuations and how do they impact? Which have the most significant impact, and why?
Stock market has been greatly developed in recent years; stocks have been one of the most important tools of investment. Considering how popular stock market it is, the fluctuation of stock market has increasingly significant affect on properties of both companies and individuals. As a result, the fluctuations gradually became the overarching concern for a majority of individuals. This essay will mainly illustrate four factors that influence stock market fluctuation including political environment, economic environment, natural disasters, manipulation and personal psychology in which political environment including international political environment and domestic political environment has the most significant impact on stock market. Also, it will discuss how these factors exert impact on stock market by listing some historical examples. Some suggestions to avoid risk of stock price fluctuation will also be given in order to guarantee the interest of investors.
A majority of countries have built a global trading system for freer flow of commodities around the world because of increasingly integrated world economy. As a result, the impacts of political environment on stock market are internationally. The outbreak of war is an indispensable affair that fluctuate stock price domestically and globally, even though not all wars in different period influence the stock market in the same way (Schneider& Troeger, 2014). Generally, before the outbreak of war, the broader market would experience a great lost. During the period of war, the stock of necessities of life and energy resources will be popular and stocks about raw materials turn to be hot issues after the war. Despite all the influence brought by the international war, stock markets are most often to react negatively (Schneider& Troeger, 2014). International economic situation is also an
Stock market has been greatly developed in recent years; stocks have been one of the most important tools of investment. Considering how popular stock market it is, the fluctuation of stock market has increasingly significant affect on properties of both companies and individuals. As a result, the fluctuations gradually became the overarching concern for a majority of individuals. This essay will mainly illustrate four factors that influence stock market fluctuation including political environment, economic environment, natural disasters, manipulation and personal psychology in which political environment including international political environment and domestic political environment has the most significant impact on stock market. Also, it will discuss how these factors exert impact on stock market by listing some historical examples. Some suggestions to avoid risk of stock price fluctuation will also be given in order to guarantee the interest of investors.
A majority of countries have built a global trading system for freer flow of commodities around the world because of increasingly integrated world economy. As a result, the impacts of political environment on stock market are internationally. The outbreak of war is an indispensable affair that fluctuate stock price domestically and globally, even though not all wars in different period influence the stock market in the same way (Schneider& Troeger, 2014). Generally, before the outbreak of war, the broader market would experience a great lost. During the period of war, the stock of necessities of life and energy resources will be popular and stocks about raw materials turn to be hot issues after the war. Despite all the influence brought by the international war, stock markets are most often to react negatively (Schneider& Troeger, 2014). International economic situation is also an