Thursday, April 2, 2015

What's going on with MSFT? (Noob questions)


I just started learning about investing and stocks, and decided to start researching the stock history of prominent corporations as practice. Unfortunately I don't really know where to start to understand it all. I don't even understand half the terminology used in here and /r/investing yet.


I wanted to look at Microsoft because it's a really visible company. Looking at the graphs, I have some questions:




  • Really noob question: What is the reason for a general upwards or downwards trend? How does a company's profit translate to a change in its stock price? Who decides this?




  • From ~April 2013 to ~January 2015, MSFT had pretty steady growth. Why is this? What made it continuously keep gaining? Is it just that everyone just believed in them?




  • What the heck happened on January 26th that started this most recent downward trend? The stock hasn't recovered since then. Why does it keep going down?




  • If you wanted to invest in MSFT, how would you decide when to buy into this stock? It seems tantalizing to buy some stock if it drops a bit more because when it bounces back, you could make a nice return. But how do you decide when? Obviously this is dependent on your personal ideas but I don't have a clue how to analyze this.




Thanks for the help!







Submitted April 02, 2015 at 07:32PM by sprakes_ http://ift.tt/1BTtjnt

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