The two forces behind stock price changes

Businessman trading online stock market on tablet screen [Courtesy]

At the most fundamental level, supply and demand in the market determine stock price changes.

All other factors advanced as reasons for price change, such as company, industry or sector performance, do not have a direct impact on prices. What they do is affect the desirability to own or sell a stock. When some traders actualise their desires during the trading session, that is the point at which the price actually changes. This alters the demand and supply balance and creates a market for further trades at a different price level.