How does the overall market influence individual stocks?
How does the overall market influence individual stocks? The performance of the overall market has a strong influence on individual stocks because markets are interconnected systems driven by broad investor sentiment, economic forces, and institutional behaviour. Even if an individual company is doing well, its stock may still fall (or rise) just because the overall market is falling (or rising). Here’s a breakdown of why that happens: 1.Market-Wide Factors Affect All Stocks Certain forces affect all companies, regardless of their …
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