Microsoft Stock Essay

I have recently been researching the Microsoft company (MSFT) stock closing prices from 1/4/2016 to 1/15/2016 in the Stock Market. Unfortunately, the MSFT stock performed poorly and losing its value almost every day. It hovers in the middle of $50 and $60 but it never drops below $50.99 or rise above $55.05. Being from the MSFT, my stock revolves around the sales of software and electronic products. We use electronics to do a lot of things such as computing math problems, providing entertainment, researching for information, and sometimes help maintain and /or improve our health. We even use electronics in vehicles and run factories. Essentially, value of the stock I have researched is determined by how something we use all around us sells.

However, my stock took its sharpest blow on the last day of my research. It dropped by a shocking 4.0% decrease on January 15th, 2016. Several factors contributed to this change. A stock’s value depends on the supply and demand. The supply is the amount of people selling stock. The demand is the amount of people buying stock. If there is a higher demand than supply, then the price of a stock moves up. If there is a smaller demand than the supply, then the price of a stock drops. Therefore, when the MSFT took a heavy blow to its stock, it was because more people wanted to sell their stock than sell it. However, the stock market is not that simple. The profits of a company also affect the stock market. 4 times a year, a company reveals the profits it had made. If the profits are not as good as expected, then the price of that company’s stock goes down. Conversely, if the profits of a company exceed expectations, then the price of that company’s stock will go up. If there was a sharp decrease in MSFT’s stock, then it was because the profits of MSFT were below