Pick Winning Stocks the Easy Way
At its most basic level, stock investing is explained by simple laws of supply and demand. Shares prices go up when demand for a company's stock exceeds current available supply. Conversely, stock prices decline when there is not enough demand to absorb the current supply provided by sellers. Understanding the economic equation with respect to stock prices is the easy part. The difficulty is in trying to figure when demand exceeds supply, and vice versa.
Most of us realize that earnings growth is the driving factor. When a company is expected to deliver future profit growth, current investors will hold on to the stock while other investors attempt to buy the stock. Demand thus exceeds supply and the result is a rising stock price. Of course, over time, if the earnings growth meets or exceeds expectations, as in the case of Apple (AAPL), the demand continues to increase while supply decreases and the stock price is off to the races....512 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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