What Factors Can Impact the Price of a Company's Shares of Stock?


Quick Answer

Financial performance, internal developments and world events are all factors that can impact a company's stock price, as noted by the Houston Chronicle. Stocks represent ownership shares of a company and are used by major corporations as a means of financing business activities, explains CNN Money.

Continue Reading
Related Videos

Full Answer

The most recent financial report serves as one indicator of a stock price, states the Houston Chronicle. More specifically, the quarterly report 10-Q contains unaudited financial statements and a summary of an organization's financial position, according to the U.S. Securities and Exchange Commission. This report must be filed for the first three fiscal quarters of a company's fiscal year.

Mergers, acquisitions and buyouts associated with a company can impact stock price as well, states the Houston Chronicle. For a company specializing in product development, news of an enhancement or improved process may drive a stock price higher. Furthermore, if a board member or executive gets hired or fired, that event may influence a stock price.

World events, including wars, natural disasters and even terrorism, could impact a stock price, explains the Houston Chronicle. Macroeconomic events, such as increased military spending, can provide new business opportunities for certain organizations. Exchange rates and inflation rates may also impact the way a company conducts business, thus leading to changes in stock price.

Learn more about Investing

Related Questions