The Psychological Side Of The Stock Market Essay examples

1032 Words May 23rd, 2016 5 Pages
Qualitative values help to figure out and judge the psychological side of the stock market. As humans, there’s always an emotional side to our judgements, and although it may seem unreasonable to buy a stock without actual substantial facts, people often can’t resist the temptations of following the hype. There are several factors in looking at the qualitative side of a stock. The company behind the stock can significantly affect the consumer and buyer’s attitude towards their stock. The employees of the company affects the productivity and the quality of their service and goods. In particular, management serves as a integral part of making a company’s decisions and in turn their direction and fate. An individual should have a grasp of the top decision makers in a company, and their experience, education ,and past performance. To a certain extent , the hiring of a well known and highly productive CEO, CFO, or COO can significantly impact the trust investors and consumer has towards the company and thereby the likeliness of them to purchase their stock. Such a event happened when Apple rehired their ex-CEO , Steve Jobs, who has a history of innovation and effective leadership; their stock value shot up following the news.
The actions of the company can affect the price of the stock, such as their use of advertisement, media, and handling of events, all of these can significantly shift the buyer 's trust and appreciation of the company. Example of such a phenomenon occurred…

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