The stock price refers to the transaction price of the stock, which is a concept relative to the stock value. The real meaning of stock price is the value of enterprise assets.
Stock price = earnings per share x price-earnings ratio.
According to the trend theory, there are three trends in stock price movement.
The most important thing is the basic trend of the stock.
That is, broad or comprehensive stock price changes. This change usually lasts for a year or more, and the total increase (decrease) of the stock price exceeds 20%. For investors, the basic trend continues to rise to form a long market, and continues to fall to form a short market.
The second trend of stock price movement is called the second trend of stock price.
Because the secondary trend is often opposite to the basic trend and has a certain inhibitory effect on it, it is also called the correction trend of stock price. This trend varies from three weeks to several months, and its share price generally rises or falls by 65438+ 0/3 or 2/3 of the basic trend of the share price.
The third trend of stock price movement is called short-term trend.
Reflects the change of stock price in a few days. A revised trend usually consists of three or more short-term trends.