Why Do Stock Prices Go Up and Down on Nigerian Exchange

Question

People often ask why do stock prices go up and down every day on the NGX.

In simple words: Prices change based on demand and supply, which means how many people want to buy or sell shares. Think of a market stall selling yams. If many buyers want yams, the trader raises the price. If buyers walk away, the trader lowers the price. Knowing why stock prices go up and down is just like that.

For example: If ten beginners want to buy shares of CHAMPION at the same time, the price goes up.

Remember:

More buyers than sellers pushes the price up.
More sellers than buyers pushes the price down.
Seeing why these prices go up and down helps you trade.

Try it on StocktoWealth: Watch how prices move for CHAMPION as you practise with your virtual money.

This is for learning, not financial advice.

Amaka Chukwu · Answer

Good day, my people, and thank you for asking such a wonderful question. Just like bargaining for fresh tomatoes at the local market, stock prices simply move based on how many people want that item at a particular time. When more hands are stretched out to buy a company than those trying to let go of their shares, the price naturally climbs up. Take your time on the simulator to watch this gentle dance, and you will soon understand how the market breathes.