I've noticed that when there's a significant change in the market, most stocks seem to move in the same direction. Whether it's an upward or downward trend, they all seem to follow suit. Why is this happening? Why does the entire
market tend to move as a unified front?
7 answers
Fri Jan 10 2025
This synchronization arises from the intrinsic values of the companies they represent.
Fri Jan 10 2025
Intrinsic value is a crucial concept in finance.
Fri Jan 10 2025
It denotes the genuine worth of a firm, reflecting its fundamental strength.
Fri Jan 10 2025
To ascertain intrinsic value, analysts often consider a company's future earnings.
Fri Jan 10 2025
The theory suggests that stock prices exhibit concurrent movements.