There are various factors that affect the equity market positively as well as negatively. When the country is experiencing economic growth, you will also see the equity market rising, however, when the economic growth of the company is low or even negative, the market will go downhill. Economic factors such as GDP growth, and interest rates, as well as political factors such as change in government, elections etc., will have a huge impact on the performance of equity markets.
Factors That Affect Equity Market
- Thread starter nomad
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There are many factors that can affect the equity market or securities traded on the stock exchange, company fundamentals, the interests of whale investors, issues or news on the stock market, economic and political conditions of a country, government policies, supply and demand,
You have mentioned very real factors that affect the equity markets. I would also like to add that disasters and emergencies also affect the equity markets. This is linked to the effect of disaster on a country's economy.
You are right, disasters and emergencies often cause changes in economic and political conditions, so that an increase in the supply of equity or sales will affect the price and market of equity,
One factor that can greatly affect equity prices is regulatory adjustments in a particular industry. When they are changed, it can have huge effects on operation and profitability of the business thereby resulting in changes in stock prices.
You have mentioned most of the factors which affect the equity market. That applies to the equity market in general. For individual stocks, the company's profitability, change in top management team will affect the price of the stock.
