Influencing factors for the returns in the stock market

Influencing factors for the returns in the stock market
Influencing factors for the returns in the stock market

If you are a weak-hearted person, then the equity investment is not an appropriate option for you as it demands that the investors have to be risk seekers. Some people take risks and get benefitted with huge amount whereas on the other hand there are people who take risks but have to incur a loss as well on the earnings calendar. The fluctuations in the stock market are due to the influence of some factors, and some of them are discussed as follows:

  • Firm-related factors:

As stated above the stock markets are volatile. But the reason for the volatility can also be due to the alteration of the attribute of the company. If there is an increase in the sale revenue of the company or if there is any sort of change in the repayment of debt, a launch of the product or anything of that sort than the public tends to possess an optimized perspective for the company, and this can bring about a great change.

If the alteration of the attributes of the company is positive for the customers, then the investors get pleased due to the profit but at the same time if the company incurs a loss, then the investors develop quite a degrading perspective for the company.  Thus, this has an impact on the returns of the stocks of the investors.

  • Exchange rates:

The exchange rates and the fluctuation of the value of the currency has a lot to do with the profit of the investors as well as the company. This has the power to bring about a major difference in the earning of the customers in the earning calendar. Thus, one must also take the exchange rate as an influencing factor for having profitable returns

  • Politics:

The political firmness, as well as the change of the governance, can have a greater impact on the business of the company. This is so because the change of the governance can also change the policies of the country and this very thing has a greater impact on the business and the profits of the company thereby altering the returns of the investors as well. The alteration of the returns can be taken both positively and negatively also.

  • Environment:

The environment plays a major role in the business of the company. It is so because if there is any unrest in the environment due to the natural calamities, then the business of the company can be hampered and thus, this can cause a major loss to the investors of the company as well.

  • Financial policies:

Alteration in the financial policies of the company also has an impact on the return of the investors on the earnings calendar. So these are some of the factors that can have a greater influence on the price of the stocks and your returns as well at the same time. If you want it to get benefitted with profitable returns on earnings calendar, and then make sure that you are considering all the factors enlisted above and then choosing the company of the stock in which you are investing in.

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