Investment Project: Stocks From Marketwatch

It is a given that stock prices always vary from day to day, as it is dependent upon the market forces that dictate it. The prices of a share of a company directly follows the patterns of consumption that people have. If people were to decide that a product or a resource is valuable and wanted to buy more of it, then there is an increase in demand. And the other way is when a resource is rather sold than bought, then that is the supply principle. What is difficult to comprehend is what makes people like a particular stock and dislike another stock. The most basic principle is that supply and demand in the market determines the values of the stock price. This comes down to knowing what news has a positive impact for a company and what news has negative impact. There can be many answers to this problem and each expert might present their own theory. Just about any investor you ask has their own ideas and strategies on how to tackle the drop of stock prices. Monetary policy is about interest rates and the supply of money in circulation. This is generally is managed by a central bank that operates in a country. Fiscal policy is about managing taxation and government spending, and it is generally determined by legislation. Monetary policy and fiscal policy are two influential elements that have great influence over a nation's ec...