Why do some shares go down sharply?

Some people say that bad investment during depressing times lead to terrible stock fall. Is it true? Other than investments, what other factors determine a stock's large fall?

FEAR.

When a stock goes down sharply - It is because people are scared and there is a MASSIVE amount of selling going on.

For every seller there is a buyer, so when a stock is dropping sharply, and people are panicking, the only people that will buy will buy at MUCH lower prices.

At these times, there is literally very little demand to buy the stock, and the 'fear' is taking over. Usually, because people fear that a stock/company's earnings are going to be much worse than anticipated (this is usually because of whatever news is hitting the markets..).

People selling there stocks causes it to drop in value. As the previous answerer said, fear is one example. But also there are people who buy a lot of the stock while it was low. Then they email people or tell them to buy the stock, that it is going to get them rich. So people buy the stock up, causing the value to rise greatly, then the guy who bought it low dumps it making a huge profit, called the pump and dump scheme.

The corporations aren't doing well, so they aren't going to be paying high dividends. That makes the demand for their stock go down, lowering the stock price.

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