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Share prices change every trading day. Understanding why helps you stay calm when they move.

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Three main reasons prices move

Supply & demand

More buyers than sellers pushes the price up; more sellers than buyers pushes it down.

Company performance

Strong profits and growth tend to lift a price; weak results tend to lower it.

News & the economy

Interest rates, the kwacha, commodity prices and company announcements all play a part.

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Why there’s risk

Because prices move both ways, investing in shares carries risk:
  • The value of your shares can fall, and you can get back less than you put in.
  • In the worst case, a company can perform badly or even close down, and its shares can lose most or all of their value.
This is normal, and it’s why the golden rules of getting started exist: start small, diversify, and think long term.

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The trade-off

Risk is the reason shares can grow your money faster than a savings account over the long run — but also why returns are never guaranteed. Spreading your money across several companies (diversifying) and staying invested over time are the simplest ways to manage it.

Next: habits that help

See the simple habits that make investing less risky and more rewarding.
Education only — not financial advice. Investments carry risk; the value of investments can go down as well as up.