How does news affect stock prices?
News can significantly impact stock prices by influencing investor sentiment and market perception.
Can you give an example of a news event that affected stock prices?
Sure! For instance, when a company announces better-than-expected earnings, its stock price often rises.
What about negative news? How does that play out?
Negative news, like a scandal or poor earnings report, can lead to a sharp decline in stock prices as investors sell off shares.
Is there a way to predict price changes based on news?
While it's challenging, some investors use sentiment analysis tools to gauge market reactions to news.
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