Topic

Effect of Stock Price in US Economy

Instructions

Write an essay paper exploring on the effects of stock price in US economy

Answer preview

The price of a stock being traded is arrived at through a rigorous process and procedure. The stock prices are usually adjusted for it to keep up with the supply and demand of the stock according to the market (Demirer, 47). Stock prices are generally determined through a set of factors that analysts consistently look and predict stock prices. Economic models affect the stocks prices, which determine the long-term potential of a company to earn. Investors at Wall Street, usually determine the stock prices because of the supply and demand of the stock. Investors are typically attracted to companies which they would be able to reap profits from in the future. This phenomenon usually makes the stock prices of such companies to rise and be in high demand. Investors are also adamant about buying stocks of companies whose stock price is generally declining. This leads to the organization price to decrease (Demirer, 47).

Word Count: 1600