# Good news vs. share price

> How good news affects stock prices depends on what you pay for the shares.
- Title: Good news vs. share price · MoneyWeek | Shortify
- Summary: How good news affects stock prices depends on what you pay for the shares. Good news makes shares rise, but only if you don't overpay for them.
- Keywords: share price, stock market, financial literacy, earnings news, ftse 350, p/e ratio, MoneyWeek
- Source: MoneyWeek — https://moneyweek.com/investments/does-good-news-make-company-good-investment
- Published: 2026-11-12T12:10:44+00:00
- Read time: 1 min
- Topics: share price, stock market, financial literacy, earnings news, ftse 350, p/e ratio
## Investor survey shows hope
82% of British adults expected shares to rise after good news.
## Academics disagree
Two-thirds of finance researchers said the news would not affect returns.
## Why the price matters
People focus on company prospects, not share price when deciding investments.
## Price change effect
Shares rose 14% after news, but 70% still expected better returns.
## Counting shares shows value
Spelling out share counts helped 49% expect better returns.
## Real-world example
With £1,100, you buy 250 shares at 440p vs. 275 before the news.
## Market reaction timeline
Shares rose 0.68% in first ten days after good news, then 0.71% after 60 days.
## Stamp duty cost
Stamp duty takes 0.5% of investment in most uk shares.
## The key insight
Good news is a good share only if you don't overpay for it.
## Key takeaway

Good news makes shares rise, but only if you don't overpay for them.