Why do stock prices move up and down the way they do? As investors, we are often confused when it comes to stock prices changing either quickly or rather infrequently. These inconsistencies are often explained by the demand of the stock when the market is open. However, few investors know why stock prices drop or rise so quickly which might also lead to making impulse decisions. That said, if we understood the mechanics of price movements, we will be less compelled to make a move when there is a sudden dip or spike in share prices. In this week’s post, we will be going through the ins-and-outs of price movements and why we should not be overly affected by price volatility. Volume, Demand and volatility Screenshot from iocbc showing ask and bid volumes which causes price movements The propensity of stock price changing is...