Jun 20 2020
Share market lower on weak leads
written by: Haylie under Uncategorized Comments: Comments Off
Share market lower on weak leads
As the share price in the market drops, companies may choose to keep profits on sale and raise their prices to raise more money for growth (as investors may have seen in recent weeks). As the share price drojarvees.comps, the profit on sale is probably less and the price raised rises faster (so a lower share price makes it cheaper to raise share prices). This can also affect the strength of the market. So, if a company is losing on a weak lead (like a drop in the share price), it should seek to raise its price to raise the same amount of money. However, it would be foolish to over-pray against weaker markets. If the stock market falls, investors tend to sell off the stock at lower prices and hold off buying stock, causing an oversupply of stock (when the share price drops). This oversupply can then be corrected. As a result of a falling share price, investors tend to put less money into the market. This causes the stock price to rise, causing the share price to fall, and so on (more on this below).
Over-pricing can also be a problem if, due to a significant price drop, the share price is now below that of the S
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