For instance, right now google is 8.28% up but who says google must be 8.28up or google must be -6.32% down??????? And if you could give me an example, how does the sell and buy of shares works I'll give ten points up???!!!!!!!!!!!!!!!!
2006-12-27 08:03:37 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
The price or value of a stock is going to depend on a number of interrelelated factors, but ultimately it boils down to what the "market" determines the value to be. The market is the community of buyers and sellers of stock. If a buyer (based on research, experience, a hunch, or belief in blind-luck) believes that the value of a stock will rise above what a seller is offering to sell stock for then they will buy at what the seller is offering it for. Generally the seller believes that the price of the stock will not go any higher or has decided that it is in his best interest to liquidate (turn into cash) his shares for whatever reason.
Here is an example:
Seller A has a share of Company Z that he purchased for $100 two years ago. He decides that this company might not do as well as it has in the past due to management changes and would like to invest his money elsewhere. He calls his stock brocker and issues a sell order. Based on current market data the price of the stock is now $150 dollars. This means that buyers in the market are currently paying $150 to own this stock (if they did not feel this was a value then demand for the stock would go down and the price would go down as well).
Buyer B has heard that Company Z has a new product that will produce record profits for the company. Buyer B beleives that the future price of the stock will rise and thus finds a value in the stock price of $150 and issues a buy order for this stock. The stock brocker now has matched a buyer with a seller and both are satisfied.
Hope that helps. Good Luck
2006-12-27 09:52:50 · answer #1 · answered by TR 2 · 1⤊ 0⤋
the economy decides wether or not a stock goes up or down. If a company is finacially strong, and is continually makeing money, more people want to but that stock, there for the stock rises in price. If to buy a stock @ $1 a share and the price of the stock then moves up to $2 you just made a dollar, but if you buy the same stock for $1 and in goes down to 50¢ you just lost half the money you invested, but if it goes back up, you make the money back
2006-12-27 08:13:53 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You and Me (When we buy or sell Google)
If nobody buys then the price drops all the way down to $0.01
If everybody buys then the price rises all the way up to $100,000.00
I suggest you to request the DVDs "Fun with Dick and Jane" starring Jim Carrey for FREE and "Robocop 3" for just $0.99
You will understand how the stock price drops.
2006-12-27 10:57:23 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Supply and demand! If more people want google the price goes up, if less want it the price goes down...
2006-12-27 08:06:35 · answer #4 · answered by Kevin K 3 · 1⤊ 0⤋
Stock ammmmmmm I think it is the time for investing in GOLD AND SILVER. I have been in the gold and silver market and I double my money in about 9 months. One of the best way to go is http://www.libertydollar.org
Read More and try also from http://www.silver-investor.com
2006-12-27 09:44:12 · answer #5 · answered by Anonymous · 0⤊ 1⤋
More buyers than sellers or vice versa.
Thats how stocks work.
2006-12-27 08:40:34 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I do.
2006-12-27 08:07:30 · answer #7 · answered by Lobster Dinosaur 3 · 0⤊ 2⤋