how do surprise and panic factors impact the stock market

Expert Solution

Stock markets means where investors buy and sell shares of stocks.Stock markrt is like a market where commodities are sale or purchased.These stock market may be listed or unlisted.

Stock market is affected by surprise factor like if market got a news for big merger,acqusition of good companies or in a case where it is shows that market will gain in near future.Hence when market got positive news then investors try to invest in more securities and in that case more money circulation is arises .this is positive sign that investor have hope for market.

But sometime stock market also get panic factor like covid-19.when market got news about thus virus people are getting scared,investor are also do not want to invest in market because all the production activities gas goes down.hence this is panic news because due to this share market prices is goes down.

Hence stock market is affected by economic factor,political factor,production factor, natural factor , man made factor,disaster etc.

When companies share is goes down or up due to market position then it can say that these activity affect share market.

Boom means a position when everyone is want to invest in project.

Rahul Sunny answered 8 months ago

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