To get cheaper and more sustainable financing, they go to the public through an initial public offering

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To get cheaper and more sustainable financing, they go to the public through an initial public offering (IPO). Here, they sell a certain stake to outside investors who now become shareholders. These shareholders can continue to hold the stake or they can exit at any time in the open market. When they exit, preferably at a profit, the new buyers become the new shareholders. Therefore, since there are thousands of companies listed at different exchanges, the course of buying and selling is a continuous process.


This makes the equities market a very large one because while some investors want to exit, others want to initiate positions. What moves stocks? To understand how to research stocks, it is important for you to understand andorra business email list the different factors that move stocks. The core factor is demand and supply. A company’s stock tends to move higher when there is more demand. It falls when there is no demand.


This demand is created by fundamental factors. For example, when a company increases its dividend, it becomes more attractive to investors and therefore increases the demand. This causes it's stock price to rise. On the other hand, if a company slashes its dividend, the existing investors rush out at a time when no one wants to enter. This leads its stock to decline. Other than dividends, other factors that move stocks are: Impressive guidance News of mergers and acquisitions Growth (or lack of) Change of management Stock repurchases Stock purchases by management Impressive economic data Stock purchase by an influential investor A positive report from sell-side analysts.