Trust Services

Basic facts about stock price movement

  • At the most fundamental level, supply and demand in the market determine stock price.
  • Price times the number of shares outstanding (market capitalization) is the value of a company. Comparing just the share price of two companies is meaningless.
  • Theoretically earnings are what affect investors’ valuation of a company, but there are other indicators that investors use to predict stock price. Remember, it is investors’ sentiments, attitudes, and expectations that ultimately affect stock prices.
  • There are many theories that try to explain the way stock prices move the way they do. Unfortunately, there is no one theory that can explain everything

« Return to Stock Basics


Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC.

Infinex and First Commonwealth Bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.

©2015 First Commonwealth Bank; 601 Philadelphia St., Indiana, PA 15701
Secure. Convenient. Mobile.
Back to Top