The stock exchange on which shares are bought and sold is an unstable working "organism", the state of which depends on the processes taking place in the world market. At the same time, the reaction sometimes occurs not only to reliable facts, but also to rumors, which are not substantiated by anything.
The fall in stock prices is often due to a number of factors that can be combined into two groups: socio-economic and private. The first of them include the political situation in the country where the company operates. Various political conflicts, scandals, unstable political course, local clashes can lead to a fall in the shares of companies with access to the world market. An unstable economic situation, local or regional economic crises or their threats, disappointing forecasts of the country's development, can lead to a fall in share prices. in which firms operate. The situation in industrialized countries - the collapse of large banks, insurance companies, changes in the economic policies of their governments and central banks - can all shake stock prices. You should also not forget about the rates of world currencies, especially the dollar and euro. Their change can undermine investor confidence in the country and its companies, and, consequently, lead to a fall in the market prices of their shares. Private factors affecting the stock price include the economic situation in the industry related to exports and domestic consumption. A decrease in demand for the industry's manufactured products, its lack of demand inevitably leads to a drop in the stock prices of companies involved in it. The company's stock price is influenced by the results of its activities. If the situation on the stock exchange is stable, but the performance of the company has not reached the planned level, this will cause a decline in the price of its shares. The stock price is influenced by such processes as mergers or acquisitions of firms. As a rule, the share of the company that loses its independence and is absorbed or joins another company falls in price.
