4. Why do stock prices fluctuate?

In the previous video, we understood the lifecycle of a company from the moment it starts to its IPO. So once a company IPO's and lists on NSE & BSE, the stock will be traded in the secondary markets. So the price will move up and down daily based on various factors. In this video, we look why do stock prices fluctuate and the factors that influence stock prices.
Dive deeper here: zerodha.com/varsity/chapter/t...
You can post a comment at the end of the module if you have any questions.

[@LarryAnthony-ut8ok44]

There has been considerable discussion regarding a October rally and the potential for certain stocks to experience substantial growth during this season. Unfortunately, I don't have specific information on which stocks might be involved. However, I recently sold my home in the Boca Grande area and are considering investing a lump sum in the stock market before any potential rebound. It is challenging to determine whether this is an opportune time to buy, as market conditions can be unpredictable.

[@JerryLuca-nm9ru55]

The reality is that nobody possesses all the answers. It is essential to establish your own process, effectively manage risk, and remain committed to your plan regardless of the circumstances. This requires a willingness to learn from mistakes and constantly improve your approach.

[@BillyeFuson2]

It may be beneficial to consult with a financial advisor who can provide personalized guidance based on your individual circumstances and goals.

[@BillyeFuson2]

Stephanie Kopp Meeks is the licensed advisor I work with. Just research the name. You’d find available details to work with her and set up an appointment.

[@gizmo9452]

Very good video. Exactly the explanation that i was lookig for.

[@bhawanayadav9996]

Key takeaways are hidden in every video because of varsity logo and the next video description. Kindly have a look at it.

[@varsitybyzerodha]

Hey Bhawana, yep. Noted :)

[@sonusmac]

@@varsitybyzerodha Sir noted but not acted on this, still struggling with this issue.

[@akhandpathi7461]

@@sonusmac Yeah, still the issue persists.

[@user-ns7vu6bz4i]

Hold Ctrl + Shift + i, go to console and type the following and press enter: for(element of document.getElementsByClassName('ytp-ce-element')) { element.style.display = 'none'; }

[@prempro42]

@varsitybyzerodha - yes, still same issue - Key takeaways are hidden in every video because of varsity logo and the next video

[@dhanushprabhus2830]

Key takeaways from this chapter A stock market is where a trader or an investor can transact (buy, sell) in shares. A stock market is a place where the buyer and seller meet electronically Different opinions make a market The stock exchange electronically facilitate the meeting of buyers and sellers News and events move the stock prices daily Demand supply mismatch also makes the stock prices move

[@TechTamizha1]

Nice video.

[@krishsachdeva21]

In the first scenario, why would the someone sell the stock knowing that the company is making profit and even if he wants to sell, wouldn’t he sell at a price above the current price of the stock?

[@GauravSharma-wb9se]

Does sto k price only change due to demand and supply?... Please clarify if fundamentals of stock is very good but people don't trade in that stock but company make money in its business annually. In this case stock price doesn't appreciate? Company growth doesn't matter for stock price?

[@shamshadalamkhan9494]

Nice

[@arnabsarkar.Med.4213]

Go full-screen, tap the comment button in full screen, close the comments... Now you can see the key takeaways

[@rinkidevi10]

I can't understand what is LTP please can you explain it more

[@varsitybyzerodha]

Hi Rinki, LTP means the price at which the stock was last traded.

[@tanvivijay1448]

What's the difference between an offer and a bid?

[@RishiJalan183]

A bid is done by the bidder who wants to purchase the stock whereas an offer is placed by the seller on the value which he wants to sell the stock for.

[@sandeepgokhale5226]

similarly is second scenario, why some one want to buy or enter stock at 3900 when company has reported a loss. I understand that all this works on sentiments of every individual but checking if there is a better explanation from experts? Thanks in advance

[@varsitybyzerodha]

Hey Sandeep, this is just an example. Also, it is someone who is willing to sell it at 3900 instead of 4000 because of the negative news; it is not a buy.