Purchases Credit Cards Counseling and Repair Stocks Mutual Funds 401K, 403B, IRA Health Life Auto Understanding Stocks Stock is simply a portion of a company. By owning stock, you are a shareholder. An IPO is underwritten by an investment banker that decides what the stock is worth and when it is best to issue it.
Volatility is when a stock price goes up or down.
Usually, stock prices rise and fall with supply and demand. Nonetheless, there are other reasons for stock prices to fluctuate. The price will rise when everyone wants the stock and is buying it, however mass sales will also drive a price in the negative direction. Prices will drop when a particular industry takes a fall, when the economy has a general downturn, when the company management is failing, or when there is too much debt. Smart investors like you will faithfully research their possibilities.