The movement of stock value depends on many factors, often unrelated to each other. The ability to properly and timely estimate and analyze the market allows buying stocks at the right time and successfully earn with their growth. What are the growth factors?
Companies from goods related industries the demand in which depends on the time of year, receive large revenues in a certain season. It is worth investing in stocks of these companies
Mergers and acquisitions significantly affect the activities of companies involved in the transaction. Structural changes, technological innovations, and renewal of certain aspects of activity – all those are reflected in the rapid growth of assets and, as a result, in an increase in demand for them
Rating agencies determine the level of reliability of companies. And, of course, the higher the position of the enterprise, the greater the confidence of large investors. They hunt among the largest companies and encourage them to buy shares of others.
The better the business of the company and the greater its profit, the higher the value of its shares. The company’s business depends on the quality of leadership, on the state of the world economy and the country’s economy, and on the relevance of the industry in which the company operates. If the economy does not grow or the industry stagnates, then the company’s profit may not grow or may even fall.
Innovative products, increased geographical spread, reduced operating costs or changes in the internal structure of workflows have a direct impact on the value of stocks
In an effort to occupy a dominant position in the market, companies hold events to find and attract new customers: launching advertising campaigns, struggling with competitors, etc. With the attraction of a new audience there comes an active growth of stocks
GDP growth, tax reforms, Central Bank interest rate reduction, the creation of additional jobs – these and other economic factors affect the attractiveness of the country as a whole and individual companies particularly in the eyes of investors
The development of new technologies or the announcement of the new products release by companies, as a rule, cause an influx of consumers. People tend to buy a novelty, thereby causing a huge jump in the value of securities. For example, Apple shares in September 2016, against the background of pre-orders for iPhone7 and iPhone7 Plus, rose by $ 13 over 4 days. It was 4 times more than expected
The coming to power of new political forces can mean great prospects for certain sectors of the economy. The value of assets of individual companies may also vary depending on the political picture of the state. Even a random statement by one of the politicians can completely change the exchange rate and provide an opportunity to quickly make profits
The Board of Directors is the main governing body of the company during the period between the general meetings of shareholders. The main task of the Board is to make strategic decisions for the development of the company’s activities, depending on which the value of shares may increase
By providing services, we strive for maximum investment security. Buying stocks can make a big profit, but this is not always safe. Knowing this, 90% of our clients prefer to invest in shares of several companies, collected in one portfolio