Stock prices are determined by supply and demand ⚖️
So if a lot of people are buying a stock, its price may go up 📈
But if a lot of people are selling a stock, its price may go down 📉
Investors buy and sell stocks based on whether they think its price will go up or down in the future 🤝
Investors' opinions are heavily influenced by news and events.
Good news, like product launches or impressive profits, can drive a stock price up 🆙
For example, if Apple releases a new iPhone, investors may flood to buy the stock -- and the iPhone -- and the price may increase 📈
In the short term, stock prices can go up and down a lot!
But over years and decades, a company's stock price tends to follow the company's true, inherent value ➡️
Financially strong companies with great products or services tend to increase in value in the long term...
whereas weak companies may eventually go out of business or lose value 💀
As an investor, it's important not to pay too much attention to a stock's short term price fluctuations, and instead focus on assessing its long-term value 💪