What are the main factors that affect US stock markets?
Probably the biggest factor that affects the market as a whole is the domestic economy. That includes recessions, rising interest rates, government policy, elections, and unforeseen shock. While individual companies may or not be affected, there are groups of companies and industries that move with the market.The general stock market is affected by changes in expectations. The market likes predictability. Any event that is unusual or one-time (like 9/11/2001) drives a market down. By contrast, the market has risen on Trump euphoria, post-election.As for individual companies, one of the major factors is earnings. If a business sells more (not at marked down prices), the earnings grow, ceteris paribus. If earnings grow, profits grow and business value increases. The owners of the company can receive dividends or higher stock prices (capital gains).
What are some external factors which affect stock prices?
I just completed reading about fundamental analysis which talks of how an investor should carry out his investment , fundamental analysis mostly deals with stock prices and lesser in terms of securities. In order to study any company it first depends on the economy, industry which the company belongs to and finally working of the company itself. While performing fundamental analysis, price of stock determines its position in the market . An investor should invest more when prices are low and expects an increase and vice versa. Coming to external factorsEconomy: Overall wellbeing of economy is crucial. In times of recession , prices will fall. In times of boom , prices will shoot. Economy wellbeing depends on monetary and fiscal policy of the govt, GDP , consumption and savings patterns, age bar of the population.Political Scenario : A very important external factor. Nobody would want to invest in country which doesn't have political stability. Eg : Syria. Even when India attempted surgical strike, Sensex went down by certain points, presuming a warlike scene ( though that was the remotest possibility but still it did affect)Budget: Budget reading also affects the stock market price, referring to the allocation to particular industries, new investment etc.Change in taxation: Affects price of the commodity, it might not affect demand a lot but stock market price respond to it. Eg : ITC`s share market responded to increase in tax to cigarettes ( it was minimal and such acts generally don't stop smokers but still share price was affected)Natural conditions : Weather conditions and social wellbeing play an imp role in GDP and hence also affect share marketIndustrial performance: An industry comes under economy. At times industry isn't affected by performance of economy on the whole. Eg: For luxury goods it has positive relation with working of the economy but in case of necessity goods people demand it , even in times of crisis Eg: Salt.Dependent industries: Depending on which segment of prodn chain is the company, it gets affected by dependent industries. For eg : Tata Steel deals with production of steel but it'll be affected if the industry of raw materials of steel is affected.Those were only external factors I could think of,there's also financial statement of the company and studying of balance sheet, Cash flow sheet and income sheet but that I guess will be direct factor. This question helped me revise for my class. Hope that helpsKeep smiling :)
What are some external factors that may cause major fluctuations in the stock market?
The financial world is really one big network of interrelated assets and transactions. From this point of view, some of the things that may be associated with major fluctuations in the stock market, such as changes in interest rates, or even in the economy, aren’t truly external. More plausibly external things would be geopolitical events or natural disasters.
What are the factors affecting market potential?
3 main factors:Can we enter the market?Barrier of entry (cost…)Competition intensityCan we benefit anything from the market?Market size and growthProfitabilityOther quantitative factors (brand…)Do we have the strength to enter?CashInternal strength
What are the external forces impacting the marketing mix?
The key to developing a marketing strategy is maintaining the right marketing mix that satisfies the target market and creates long term relationships with customers. Successful companies offer at least one dimension of value that surpasses all competitors in the marketplace in meeting customer expectations. Successful companies must also maintain acceptable, and if possible, distinguishable differences in the other dimensions as well. would those be a good answer?