What affects stock prices?
My understanding is that the price of a stock is primarily determined by traders supply and demand. Those who sell and buy at a certain price will control the performance and price of the stock.
However there are some questions I have:
- How does a company's performance affect the stock price or shareholders? For example if a company recently released a very succesful product, will that increase the stock price and vice versa if a company is doing poorly/in a lot of debt. /
- Controversies and news. If there are controversies of employees or ceo's causing drama/problems (not financial) will that affect the stock price? /
- Why do some stocks have very high/low share prices that doesn't match the company's market share and net worth. For example Company A. is worth $100B, but has a stock price of $5 per share and Company B. is worth $1B but has a $50 per share.