Stock market behaves like any other market in a competitive economy. The market price of a stock is determined by the supply of shares from the seller and the demand for stocks of copper. In principle, supply and demand are rules at work here. If more people a share (demand) than people who want to buy want to sell (offer), then the price moves up the other hand, if more people wanted a share to buy as there were more supply than demand for sale, and price would fall. In the bull market when the share price of the shares is high, everyone wants to buy in. This is a greater demand on the market and creates a higher price. On the contrary, in a bear market, lower demand than supply, hence the price drop.
The Internet boom in the late 1990s and the recent commodities boom has stimulated a great demand from investors in Internet stocks and commodities. The performance of the IPO was exceptional. The financial crisis of 2008, on the contrary, saw investors fled the stock market and left nothing to be spared. The index plunged to the worst level since the Great Depression years. You come to a different piece of mind that stock prices also very dependent searchable by psychological factors like fear and greed.
Fear takes usually two basic forms, lack the fear of loss and fear. Fear of loss makes investors sell shares at the first sign of trouble. In 2008 stock market crisis, the fear that dominated trade and investment. Everyone fears, panic and sell their shares. Stock Index plunged worldwide by 40 to 50%. The fear of the mist to investors, the fundamentals and invest power to run on shares, so that they can not miss another type to buy. This will lead to a big increase in demand for the stock and the price. Greed is nothing more than fear of fog, the difference is that greedy investors already on the market. You are not wrong, but they want more money and profit out of their way.
You are in the stock market reached, the steady rise in the price Banking. The media also play a part quantity. Information about stocks and transactions are free or nearly free on the Internet and the media to change the feel of a particular company and the stock drive in just a blink of an eye. Emotion of investors (retail investors and fund managers alike), the amount of market participants and the media, the fuel volatility in the equity markets. Two or three decades, it was unusual that the index change of 2-3% in one day, but now we are witnessing DJIA and changed other markets around the world in this area in a heartbeat. Stock prices were increasingly feeling, emotion and psychology, all driven by the free flow of information carried in the media.