Shares/Stock How The Price of Share is Determined

[Jasz]

The price of a share is determined by the market forces of supply and demand. When the supply of shares is high, the price will drop. When the demand for shares increases, the price will rise. In order for a stock to increase in value, it has to be sold. This means that there must be more buyers than sellers at any given time. If there are more buyers than sellers, then the price will go up; if there are fewer buyers than sellers, then the price will go down.

If you want to know what your stock is worth today (or what it will be worth in the future), you need to first find out how many shares are being traded at any moment in time. To do this, you can use a technical analysis tool such as StockCharts or NASDAQ Stock Market Data Retrieval (SCR). Once you know how many shares are being traded at any given time and how much they're worth, you can use these numbers to predict what your stock will be worth in the future.

 

[Suba]

Your discussion is too broad to only say that stock prices are determined by supply and demand. This is a basic law of economics, and the price of all goods is determined by supply and demand. If you want to analyze stock prices, look at the performance of the company that issued the stock. You can also use technical and fundamental analysis such as the level of debt usage, earnings per share, the ratio of earnings to earnings per share etc. You also need to pay attention to fluctuations in the fiat money exchange rate in your country and whether the interest rate is going down or up.

 

[Holicent]

The rise in the price of shares is a good indicator for the economy. If you want to know what will happen to the stock market, simply look at how much it has risen or fallen in recent months.
The price of a share reflects the value that investors place on a company. Shares can be bought and sold at any time, so they're an excellent way to track the market's movements.

However, just as @Suba said, there are so many factors to be considered other than demand and supply. The easiest way to predict the price of shares is to use a valuation model. This is a statistical method that allows you to determine the intrinsic value of a company by analyzing its financial statements and comparing it to similar companies. There are several forms of valuation models, but they all have one thing in common — they rely on historical data. The more historical data you have, the better your valuation model will be.

Price prediction models are almost always based on some type of regression analysis. Regression analysis is an approach that uses historical data and other factors (such as internal company information) to predict future results.

 

[Holicent]

@Suba i understand you. Well my first thread didn't cover much. Nonetheless, the following factors will affect the price of shares:

1. The type of company: Some companies are listed on the stock exchange and some aren't. The more established a company is, the higher its share price will be.

2. The size of the share: Large companies have more shares outstanding and therefore have a larger market cap than small ones, which means they can afford to pay higher prices per share (and thus raise the total amount that investors get paid when they sell their shares). Smaller companies don't have as many shares outstanding so their market cap is smaller, so they can't afford to pay as much per share or raise their total amount investors get paid for selling their shares as large companies can.

3. Market conditions: Companies with strong growth prospects tend to attract more investor interest than those with weaker growth prospects, which lowers the price per share for these strong-growth companies' shares relative to their weaker-growth counterparts'. We could also put:

-The company's performance
-The economic situation in a country
-The country's government policy towards the company
-The amount of money that has been invested in the company by its shareholders

 

[anil02]

The price of a share is determined by the market forces of supply and demand. When the supply of shares is high, the price will drop. When the demand for shares increases, the price will rise. In order for a stock to increase in value, it has to be sold. This means that there must be more buyers than sellers at any given time. If there are more buyers than sellers, then the price will go up; if there are fewer buyers than sellers, then the price will go down.

If you want to know what your stock is worth today (or what it will be worth in the future), you need to first find out how many shares are being traded at any moment in time. To do this, you can use a technical analysis tool such as StockCharts or NASDAQ Stock Market Data Retrieval (SCR). Once you know how many shares are being traded at any given time and how much they're worth, you can use these numbers to predict what your stock will be worth in the future.

It is right that price of most of things is determined with demand and supply it is also some what true for stock market but some other factor also effected price of stock market. First is performance and policy of companies. If a company decide to convert debenture in shares than price of debenture may be high and if some company announce bonus share than price of share will be high. Like it government polices also have effect on price of shares.