In general terms, when you witness if the stock price and volume of a stock suddenly jumps, there may be typically three reasons for this: i. Company’s fundamentals have changed, say a financial or structural reform has been undertaken which has turned around the company’s financial standing. ii. The sector to which the company belongs, could be experiencing a seasonal or circumstantial boom. iii. Unfair trading practices by market participants which may be in the form of cornering, insider trading, front running, blank selling, etc. These practices may cause sudden change in price chart, even of an inactive and illiquid stock. These practices are discouraged and curbed by the regulators through effective market surveillance and investigations. Moreover, there are several types of investors: some are long term investors who simply tuck away their investments for years while others trade frequently and keep a close eye on how their shares are performing. You can check your shares’ performance in various ways. A daily indicator of share price movements is available in newspapers and also on website of the relevant stock exchange. You may access this information directly or through your stock broker/advisor. Informative articles about many companies are regularly published in newspapers and investment magazines. Your stockbroker may also provide valuable information. Some publish newsletters for their clients, reflecting their views on the performance of selected companies. Annual reports of companies also contain useful information. Some companies have shareholder relations departments, which can help with factual information.
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