Thursday, 12 March 2020

What is the stock market?

Hong Hunkin: the market is the people buying and selling - they respond to both facts like unemployment figures and rumours like mergers etc.

Gabriel Realmuto: People buy and sell stocks for their future values, if new news comes out that changes overall market opinion (such as unemployment rates or GDP growth) then if good, people will buy stocks and the market will rise (the market liked it) and if it's bad then the opposite will happen. The market is notoriously fickle and what seems like good news could actually be interpreted as bad by the market.

Chris Rosenkranz: This refers to the consensus opinion of investors, as expressed by movements in the stock market.A decline indicates "the market" doesn't like the news that's come out.

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