Reasons for rise in share value

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Avinasheswar (Querist)
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26 September 2007 The reason for rise in price in any case is of course its demand.But for demanding something there should be a use to it.For example when one demands land, it may be for building a house in it.But in case of shares what is the inspiration for a person to buy it.Dividend is never an inspiration because that comes to just one percent or slightly more of the market price of stock exchange listed shares.Please do not say rise in share value itself is the reason for the rise in share value.Can anyone please explain then why this rise happens?

sivasankar

sivasankar (Expert)
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27 September 2007 There are lot reasons for rise in share value.
For example in case of Reliance petroleum prices went up because the foreign partner wants to increase the stake.
and
The market is rising the price now itself by anticipating the profit to be earned by the company in 2008.
Like wise if ruppee depreciates the value of IT stocks will go up since their margin will increase.