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Interest Rate

Stock Market

Influences on share price.

A rise in interest rates is likely to reduce share prices.

Government Policy
Interest Rate
Government Policy

A cut in corporate taxes is likely to raise share prices as people will expect firms to be able to pay out larger dividends. 

Government Policy
Profit Record
New Share
Profit Record

The profits earned and expected to be earned by firms directly influence share prices. A firm with high and/or rising profits is likely to see its share prices increase.

Issue of new shares

When a firm issues new shares, it increases their supply usually resulting in a fall in their price

Takeovers
Takeovers and rumours

Buying up shares to gain control of a firm will usually drive up their price as will the suggestion, that a takeover is about to occur

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