Which factors can affect share prices?

Company performance and economic indicators are crucial factors that significantly impact share prices. When a company demonstrates strong financial performance, such as increasing revenues and profits, it typically boosts investor confidence, leading to an increase in its stock price. Conversely, poor performance can lead to declining stock prices.

Economic indicators, like GDP growth, unemployment rates, inflation, and interest rates, also play a vital role. These indicators can influence investor expectations about a company's future earnings and overall market conditions. For instance, if economic growth is robust, it often leads to increased consumer spending, which can benefit companies and, subsequently, their stock prices.

While personal investments of company executives may have some effect, particularly if they buy or sell large quantities of stock, they are not as influential on share prices as broad company performance and economic indicators. Similarly, while investor sentiment and market trends (another option) influence stock prices, they are not solely responsible for changes. Finally, focusing exclusively on a stock's historical performance does not account for future potential and current economic conditions, limiting its relevance in assessing share price movements.