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An investment in knowledge pays the best interest. ~ Benjamin Franklin

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"An investment in knowledge pays the best interest." - Benjamin Franklin quotes from BrainyQuote.com

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Attacks by extremist groups can temporarily halt a stock market.

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If a supply and demand rise or lower, the stock should rise or lower with that price.

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If a company is going low on stocks, another company might step in and buy that company and rise or decrease stock prices based on their views.

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Welcome to The Motley Fool's Knowledge Center! Whether you're new to investing or a pro, you'll find lots of useful information here. Investing is full of (often unecessary) jargon, and we're here to help you cut through all that to understand the underlying concepts. You can search through the Knowledge Center using the search bar above this article, or by clicking through the links below. They'll take you to general topic pages, which then link out to more specific terms. Either way, know that we're here to help! And if you see an opportunity for us to cover more or different concepts, let us know at knowledgecenter@fool.com!
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Welcome to The Motley Fool's Knowledge Center! Whether you're new to investing or a pro, you'll find lots of useful information here. Investing is full of (often unecessary) jargon, and we're here to help you cut through all that to understand the underlying concepts.

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Should a shift in the political system arise, such as, tax and/or bands, the stock would fall/rise based on the situation.

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Company news and performance

Here are some company-specific factors that can affect the share price:

news releases on earnings and profits, and future estimated earnings

announcement of dividends

introduction of a new product or a product recall

securing a new large contract

employee layoffs

anticipated takeover or merger

a change of management

accounting errors or scandals

Industry performance

Often, the stock price of the companies in the same industry will move in tandem with each other. This is because market conditions generally affect the companies in the same industry the same way. But sometimes, the stock price of a company will benefit from a piece of bad news for its competitor if the companies are competing for the same market.

Investor sentiment

Investor sentiment or confidence can cause the market to go up or down, which can cause stock prices to rise or fall. The general direction that the stock market takes can affect the value of a stock:

bull market - a strong stock market where stock prices are rising and investor confidence is growing. It's often tied to economic recovery or an economic boom, as well as investor optimism.

stock Stock An investment that gives you part ownership or shares in a company. Often provides voting rights in some business decisions. bear market Bear market A weak market where stock prices fall and investor confidence fades. Often happens when an economy is in recession and unemployment is high, with rising prices. + read full definition - a weak market where + read full definition prices are falling and investor confidence is fading. It often happens when an economy is in recession and unemployment is high, with rising prices.

Economic factors

1. Interest rates

The Bank of Canada can raise or lower interest rates to stabilize or stimulate the Canadian economy. This is known as monetary policy. If a company borrows money to expand and improve its business, higher interest rates will affect the cost of its . This can reduce company and the dividends it pays shareholders. As a result, its price may drop. And, in times of higher interest rates, investments that pay interest tend to be more attractive to investors than stocks.

2. Economic outlook

If it looks like the economy is going to expand, stock prices may rise. Investors may buy more stocks thinking they will see future profits and higher stock prices. If the economic outlook is uncertain, investors may reduce their buying or start selling.

3. Inflation

means higher consumer prices. This often slows sales and reduces profits. Higher prices will also often lead to higher interest rates. For example, the Bank of Canada may raise interest rates to slow down inflation. These changes will tend to bring down stock prices. Commodities however, may do better with inflation, so their prices may rise.

4. Deflation

Falling prices tend to mean lower profits for companies and decreased economic activity. Stock prices may go down, and investors may start selling their shares and move to fixed-income investments like bonds. Interest rates may be lowered to encourage people to borrow more. The goal is increased spending and economic activity. The Great Depression (1929-1939) was one of the worst periods of ever.

5. Economic and political shocks

Changes around the world can affect both the economy and stock prices. For example, a rise in energy costs can lead to lower sales, lower profits and lower stock prices. An act of terrorism can also lead to a downturn in economic activity and a fall in stock prices.

6. Changes in economic policy

If a new government comes into power, it may decide to make new policies. Sometimes these changes can be seen as good for business, and sometimes not. They may lead to changes in inflation and interest rates, which in turn may affect stock prices.

7. The value of the Canadian dollar

Many Canadian companies sell products to buyers in other countries. If the Canadian dollar rises, their customers will have to spend more to buy Canadian goods. This can drive down sales, which in turn can lead to lower stock prices. When the price of the Canadian dollar falls, it makes it cheaper for others to buy our products. This can make stock prices rise.

Key point

Stock prices can be affected by:

company news and performance

industry performance

investor sentiment

economic factors

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Factors that can affect stock prices | Stocks | GetSmarterAboutMoney.ca

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Here are some company-specific factors that can affect the share price: news releases on earnings and profits, and future estimated earnings announcement of dividends introduction of a new product or a product recall securing a new large contract employee layoffs anticipated takeover or merger a change of management accounting errors or scandals Often, the stock price of the companies in the same industry will move in tandem with each other.

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If an object's price should rise or fall, the stock market based on that object should rise or fall with it.

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Company news and performance

Here are some company-specific factors that can affect the share price:

news releases on earnings and profits, and future estimated earnings

announcement of dividends

introduction of a new product or a product recall

securing a new large contract

employee layoffs

anticipated takeover or merger

a change of management

accounting errors or scandals

Industry performance

Often, the stock price of the companies in the same industry will move in tandem with each other. This is because market conditions generally affect the companies in the same industry the same way. But sometimes, the stock price of a company will benefit from a piece of bad news for its competitor if the companies are competing for the same market.

Investor sentiment

Investor sentiment or confidence can cause the market to go up or down, which can cause stock prices to rise or fall. The general direction that the stock market takes can affect the value of a stock:

bull market - a strong stock market where stock prices are rising and investor confidence is growing. It's often tied to economic recovery or an economic boom, as well as investor optimism.

stock Stock An investment that gives you part ownership or shares in a company. Often provides voting rights in some business decisions. bear market Bear market A weak market where stock prices fall and investor confidence fades. Often happens when an economy is in recession and unemployment is high, with rising prices. + read full definition - a weak market where + read full definition prices are falling and investor confidence is fading. It often happens when an economy is in recession and unemployment is high, with rising prices.

Economic factors

1. Interest rates

The Bank of Canada can raise or lower interest rates to stabilize or stimulate the Canadian economy. This is known as monetary policy. If a company borrows money to expand and improve its business, higher interest rates will affect the cost of its . This can reduce company and the dividends it pays shareholders. As a result, its price may drop. And, in times of higher interest rates, investments that pay interest tend to be more attractive to investors than stocks.

2. Economic outlook

If it looks like the economy is going to expand, stock prices may rise. Investors may buy more stocks thinking they will see future profits and higher stock prices. If the economic outlook is uncertain, investors may reduce their buying or start selling.

3. Inflation

means higher consumer prices. This often slows sales and reduces profits. Higher prices will also often lead to higher interest rates. For example, the Bank of Canada may raise interest rates to slow down inflation. These changes will tend to bring down stock prices. Commodities however, may do better with inflation, so their prices may rise.

4. Deflation

Falling prices tend to mean lower profits for companies and decreased economic activity. Stock prices may go down, and investors may start selling their shares and move to fixed-income investments like bonds. Interest rates may be lowered to encourage people to borrow more. The goal is increased spending and economic activity. The Great Depression (1929-1939) was one of the worst periods of ever.

5. Economic and political shocks

Changes around the world can affect both the economy and stock prices. For example, a rise in energy costs can lead to lower sales, lower profits and lower stock prices. An act of terrorism can also lead to a downturn in economic activity and a fall in stock prices.

6. Changes in economic policy

If a new government comes into power, it may decide to make new policies. Sometimes these changes can be seen as good for business, and sometimes not. They may lead to changes in inflation and interest rates, which in turn may affect stock prices.

7. The value of the Canadian dollar

Many Canadian companies sell products to buyers in other countries. If the Canadian dollar rises, their customers will have to spend more to buy Canadian goods. This can drive down sales, which in turn can lead to lower stock prices. When the price of the Canadian dollar falls, it makes it cheaper for others to buy our products. This can make stock prices rise.

Key point

Stock prices can be affected by:

company news and performance

industry performance

investor sentiment

economic factors

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Factors that can affect stock prices | Stocks | GetSmarterAboutMoney.ca

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Here are some company-specific factors that can affect the share price: news releases on earnings and profits, and future estimated earnings announcement of dividends introduction of a new product or a product recall securing a new large contract employee layoffs anticipated takeover or merger a change of management accounting errors or scandals Often, the stock price of the companies in the same industry will move in tandem with each other.

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The unpredictable future of the market in the world.