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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