Is It Bad If Stocks You Own Change Price Frequently?


Quick Answer

It is perfectly normal for stocks to change prices frequently, according to Dollars & Sense. Stock prices frequently change in a matter of seconds. Traders buying and selling stock throughout the day cause the volatility of the price of any given stock.

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Full Answer

Stock prices reflect the prices at which people holding stock are willing to sell, Dollars & Sense states. A stock priced at $50 may drop to $48 in a few seconds if that is the highest sale offer on the table. The price of heavily traded stock changes hundreds of times every day. Less popular stock may change only once or twice in a day. Each change affects the valuation of an individual investor's portfolio, so if the portfolio has many heavily traded stocks, the investor can expect to see nearly constant price changes throughout the day.

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