Factors Affecting Price on Stock Exchange

·       Financial Position of a Company:- With the increase in Sales & Profits, Price of securities also increases and vice versa. Rate of dividend also influences the price of shares. Higher dividend rate attract more investors.

·       Demand & Supply Position:-With the increase in more demand , Price also increases & vice versa.

·       Role of Financial Institutions:- Like LIC, UTI, IFCI, ICICI purchase share of good companies in bulk. With the increase in supply, increase in price of shares. If they are selling their holding, due to this decrease in supply there is decrease in prices.

·       Lending rate:-  With the low lending rate, there is increase in money supply leads to increase in prices and vice versa.

·       Trade Cycle:-   With boom, there is increase in process and during depression , leads to decrease in prices.