How do stock prices even move?

[analyzedstock]

The sentiment of the market participants affect stock prices directly as people end up involving emotions when betting their money. If many people are not happy about the future of the country's economy then the stock prices are bound to fall as people do not feel that the current price is worth the company's future profits.

Therefore, the demand for the stock will fall and the supply will increase thus making prices fall. This is the most basic reason why stock prices even move. The reason why the sentiment is bad for a particular stock or the stock market could be many.

http://analyzedstock.com/factors-affecting-stock-market-and-prices.html

 

[DionysusToast]

Prices move only through the consumption of liquidity