eg: UK or Brides UK or Classical Art or Buy Music or Spirituality
 
eg: UK or Brides UK or Classical Art or Buy Music or Spirituality
 

Your Online Guide » Guide to Finance » How To Handle Finances

[A330]After Market Stock Quotes
by David A. Sorenger, Dav

Stock quotes are always in flux. The price of a stock is changing because it underlies the laws of supply and demand. Imagine that the price of a stock on the stock exchange always reflects the value of the underlying company in the far or near future and not the current value, then you will understand that the stock price has to change in the present all time. People's belief about the company's future value drives the stock pricing.

Stock quotes are made by the market makers. It's their job to make the market in a stock and therefore they have to post a current bid and ask price at all times during market hours.

The bid price is the price where the market maker will buy from you. The ask price is the price where he sells to you. You must always buy the higher ask and can only sell to the lower bid price. The difference is called the spread and it is the income of the market maker.

If you put yourself in the role of the market maker then you will understand how it works. He has to buy or sell from you even when he has nobody else to trade with. That's his job but it has big risks. The only way to control this risk is to control the spread.

That's why stock quotes are changing as well because the spread changes. The spread will widen for instance when there is very low share volume or when the stock moves very fast. Both situations inherit higher risk for the market maker, therefore the higher spread. On the other side a slow market will narrow the spread. Also when a lot of buyers and sellers lining up the risk is reduced and the spread goes down. The spread can be several points or dollars in the worst case but in the well known big stocks it's only a few cents.

Normally a stock is just a portion of the company and therefore should reflect the value of the company and nothing else. In the very long term this is maybe true but short and mid term there are too many things that influence the perceived value. The stock quotes can change several points or percent within hours although nothing new had happened to the company itself but certain factors were interpreted to have effect now or later.

If the overall market is positive for instance, then your stock is likely to go up too because people believe it will. The stock price can go down dramatically in one day although the company reported good earnings the very same day. Just because there were bad general or sector news. The market went down and took your stock with it.

Don't make the mistake to believe that you can predict share prices. Nobody can even predict the price for the next five seconds. Successful traders don't try to control the stock quotes but take the whole environment and its possible impacts into consideration.


I have adviced many people about this http://www.freebsetips.com/ giving daily free NSE BSE stock tips, which has done considerably well with a success ratio of 80 - 85 %, which is a phenominal work. This http://www.freebsetips.com/ gives tips only after stock technical analysis with short term target as its primary objective. It also rarely gives calls for Medium term target and long term target. The given target definitely reaches with the short period as suggested in the blog. Short term target means 3 Months , Medium Term Target means 6 Months and long term Target means 1 year.

Most of the scrips are available in BSE India and NSE India. If you really want to check the performace of the stock quotes just follow this http://www.freebsetips.com/ for a period of one month as I did and the result you will find will be mind boggling. Mostly stock prices reaches its target within a months time.

The BSE equity scrips given in this http://www.freebsetips.com/ are not available anywhere else as a tip since i keep searching for tips every now and then and start researching every site. This is one site or http://www.freebsetips.com/ whose performance is so good that I have become a fan of the http://www.freebsetips.com/ author and I suggest everybody who keeps searching for bse nse quotes tips in various sites like sharekhan, icici direct, moneycontrol, nse mumbai, nse exchange, bseindia, nseindia, etc... can finally believe this http://www.freebsetips.com/ tips and invest to get very good returns in a short frame of time.
Article Source : Pg. 249

About Author
Both David A. Sorenger & Jaba Kumar Jaysingh are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

David A. Sorenger has sinced written about articles on various topics from Finances, Stock Exchange and Finances. David A. Sorenger is a stock market expert and provides detailed information on at his web site. David A. Sorenger's top article generates over 8100 views. to your Favourites.

Jaba Kumar Jaysingh has sinced written about articles on various topics from Finances. Share Market Tips, NSE and Bse Share tips, NSE Bse Stock tips, Short term target, Mid term target, Long Term Target, bse india, nse india, stock quotes, nse mumbai, bse equity, nse exchange, stock prices, nse index, stock technical analysis, bse nse quote. Jaba Kumar Jaysingh's top article generates over 8100 views. to your Favourites.
EditorialToday Guide to Finance has 5 sub sections. Such as Introduction to Accounting, Payroll Information, Loan Guide, Tax Matters and Introduction to Finance. With over 20,000 authors and writers, we are a well known online resource and editorial services site in United Kingdom, Canada & America . Here, we cover all the major topics from self help guide to A Guide to Business, Guide to Finance, Ideas for Marketing, Legal Guide, Lettre De Motivation, Guide to Insurance, Guide to Health, Guide to Medical, Military Service, Guide to Women, Pet Guide, Politics and Policy , Guide to Technology, The Travel Guide, Information on Cars, Entertainment Guide, Family Guide to, Hobbies and Interests, Quality Home Improvement, Arts & Humanities and many more.
About Editorial Today | Contact Us | Terms of Use | Submit an Article | Our Authors | Financial Terminology » A - E » F - L » » S - Z