Would stock prices of oil/energy companies drop a great deal as well, along with the price of oil? Would the stock prices rise? Could it go either way, based on other factors?If the price of oil plummets (eg, to $40 a barrel) how would stock prices of oil/energy companies be impacted?
Stock prices are mostly based on expectations. Let's assume everybody expect a decline in oil prices. So people start selling oil companies' stocks and those stock prices decrease. When oil prices actually fall down to USD40, stocks will not be affected, because the expectation is already factored in the stock price.If the price of oil plummets (eg, to $40 a barrel) how would stock prices of oil/energy companies be impacted?
The oil/energy stocks would probably drop while stocks in general would rise.
Stocks I'm sure would fall.
they would probably fall
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