How do Stocks move?

Consider at 9:00 am today the stock price of Pixel was Rs.360 per share.

At 10:00 am the company released news about its new upcoming anti-virus software, which was expected to boost their sales.

Due to this positive announcement the stock prices moved in a upward direction as all the participants started buying the stocks and Rahul was eager to buy the stock at any price.

But if the announcement was negative like the CEO being removed due to involvement in some scandal. Then Rahul would have two point of views,

1. Either he could’ve kept in believing in the company that they would replace the current CEO with someone competent enough and would have held his investment. 2. Or he would have withdrawn his investment as he believed that the company was going to fall.

These type of announcements and news make the stock prices move. If there’s no news of the company and the company is quite popular like Infosys, people would still be interested in buying its stocks and the price moves constantly. On the other hand, if the company is relatively unknown then stock price may not move or even if it did the change would be marginal.