how is the current price of a stock(shares) determined?

Answer 1

Supply and demand arun. If the company is profitable and making good money, has good management and the future is looking good, people holding the stock are not going to sell and buyers have to up their price to get stockholders to sell. If a company has dis-appointing results and the future looks bleak a lot of shares will be available and the price will drop to find buyers.

Answer 2

It depends. During an IPO (initial public offering) the company will determine how much money they need to raise from equity and will issue an initial stock price based on shares to be offered.

After an IPO, the valeu of the stock price is determined by the market's confidence in the company....the more profitable an investment the company is determined the more sought after its stock and the higher the price goes...sometimes when a stock price price increases too much or too dramatically, a company may decide to split the stock to drive down the price. There is alot more to all this but I hope this helps you understand the valuation process a little bit.

Answer 3

An analysist determines the value of a company by reviewing it's financial statements. They then look at current earnings and determine where the company might be going in the future. This sets a range that the stock should be trading within. If something happens in the news that indicates that a compeny will either outperform that estimate the price goes up and if the news indicates that the company will not perform as well as anticipated the price would go down.

Answer 4

that's and continually has been in accordance with modern-day industry fee. Why might desire to the coverage organization be made to pay too lots for a vehicle while they weren't people who made the blunders of overpaying?

Answer 5

By the market.

Answer 6

Not sure