Answer: pricing of stocks is fairly simple for most investors to understand
Step-by-step explanation:
The value and pricing of stocks is fairly simple for most investors to understand. Basically, the value of a stock at any given time should reflect all known information about the company and market. The expectations of investors play a significant role in determining price movements. When a company has a better-than-expected earnings report, stock prices tend to rise at a higher rate than originally forecast - hence, investors get a good return on their money in the form of income (dividends), capital gains (the profit made from the stock when it is sold), or both. Outside factors such as oil prices may temporarily drive stock prices down, but these tend to be short-term issues that do not significantly impact the underlying value of the stock.