At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga.
Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus.
Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
Hoot! You just asked your first question! Hang tight while I find people to answer it for you. You can thank people who give you good answers by clicking the 'Good Answer' button on the right!
the price of a share is determined by supply and demand. The supply of a share is based on both the number of shares a company has issued and the number of shareholders who are willing to sell. The demand is created by people who want to buy those shares.
Generally, the more that people desire to own a share, the more they are willing to pay for it. However as the supply of shares is limited, investors can only buy shares that are already owned by someone else. So if one person wants to buy, somebody else has to sell, and vice versa. If a lot of people want to buy at the current price, and not a lot of people want to the sell then the supply is low and so the price moves up until share holders are willing to sell.
The price of the traded stock reflects the tradeoff b/w demand and supply. The demand for a share will increase whenever there is a news that the future prospectus of the company is good like decrease in tax rates, falling interest rates, excellent growth reported in current year etc; and since the supply is limited the price will increase. Vice-versa is true for decrease in price.