Multiply India - Information on Financial Planning

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Why does the price of equities change quickly?

The price of a share changes when people buy more or the existing investors sell the shares.

How does the share price fall?

How does the share price fall?

There are only a limited number of shares available for investors
The more shares they buy, the lesser will be available for the remaining investors
It is just like the dynamic pricing while booking a Tatkal ticket in the railways
The lesser available shares, the costlier they become

How does the share price rise?

How does the share price rise?

When more and more shareholders are selling the shares, the number of shares available for purchase rises
Since there are more shares available, but the buyers are only a few, the share price falls
Thus, the more shares are available, the cheaper they become

Why do prices rise and fall very fast?

Why do prices rise and fall very fast?

The price of a share can change every second
This is because India is a country with a large number of investors
Therefore, whenever someone buys or sells a stock, the share price changes

Are you finding it interesting to learn about equities?

Are you finding it interesting to learn about equities?

Do you want to learn more?

Keep scrolling through.

Learn about Demat accounts in the next chapter