ELi5 : Why does the stock of a company fluctuate when it is involved in a controversy?

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ELi5 : Why does the stock of a company fluctuate when it is involved in a controversy?

In: Economics

9 Answers

Anonymous 0 Comments

There is obviously other elements, but mostly a company’s stock is based on speculation. It is based on how well you think it will do in the future. Controversy makes people lose confidence in a stock, they sell, people buy, the price can change a lot in a short amount of time.

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