Why Do Stock Prices Go Up And Down In Nigeria Markets

Question

If you wonder why do stock prices go up and down, it is all about buyers and sellers on the Nigerian Exchange.

In simple words: Prices move based on demand and supply, just like food in a busy market. When more people want shares, the price rises.

For example: If everyone wants to buy plantain at a stall, the seller raises the price from 200 Naira to 400 Naira.

Remember:

Understanding why prices go up and down takes a little time for beginners.
Share prices rise when buyers outnumber sellers on the NGX.
Prices fall when sellers outnumber buyers.

Try it on StocktoWealth: Watch how why stock prices go up and down affects DANGSUGAR using your virtual cash.

This is for learning, not financial advice.

Ngozi Ade · Answer

Ah, my friend, do not let big grammar confuse you about the market. Think of the Nigerian Exchange just like how we bargain for tomatoes or pepper at Mile 12 market; when plenty people want to buy the same thing, the owner knows he can increase the price. But if the market is cold and nobody is buying, the seller must reduce the price so something can sell. On our simulated app here, you are just watching that same market dance happen with company shares using your practice money.

Amaka Chukwu · Answer

Good day, my friend, and welcome to the class. Think of the Nigerian Exchange like a weekend market in your neighborhood where people come to buy and sell things. When too many people want the exact same basket of tomatoes, the seller knows they can ask for more money, and that is how prices go up. If nobody wants to buy those tomatoes before they get spoil, the seller must bring the price down so someone will pity them and take it away. Take your time to watch DANGSUGAR on your StocktoWealth ap...