This is a daunting question indeed; let me explain using an example. If a company called Rock Mobiles is very famous for mobiles and it attracts lots of customers
. Now, since this is a competitive world, everybody wants a mobile to get connected to people, so the value of the shares of the mobile company will be always in demand and therefore, attracting lot of people towards its shares. So the demand should match the supply. In order to match the supply, the company will increase the price. So the share value of that company increases. So here the market fluctuates from downward trend to upward trend. But when there is another competitor say Blow Mobiles available in the market and selling the best quality mobiles and the price of the mobiles are cheaper than the price of the Rock Mobiles, then the share value of Rock Mobiles will obviously come down. And the rival company’s shares will go up. So, now the flow in the stock market will be declining at one end and booming at another end.
So like wise, everyday in the stock markets, there will be many stocks with increasing prices and others with decreasing prices. Thus, Fluctuation in the stock market is nothing but increasing and decreasing scenario. And on the other hand if there are lots of shares for sale and no one is interested in buying them even though the shares belong to a huge company, then the price will quickly fall, because there are no customers who can buy those shares or who are purely not interested in buying them
Therefore, Fluctuations are inevitable in any market and stock-market is no exception.
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