Dealer at the exchange when more shares are in demand than available for share? Company decides? Company buys back shares?
2007-03-15 01:55:32 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
Supply and Demand.
If the Company buys back shares then obviously the stock price will go up.
2007-03-16 20:31:39 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Market forces determines if the price rises or falls. In other words, if the next guy in line to buy the stock is willing to pay more than the last buyer did, the price will rise. If the next guy is willing to pay less, and you (or any other seller) is willing to sell at the lower price, the price drops. Company does not decide the trade price. If they think the shares are undervalued, and there is no better investment for their extra cash, they can buy back their own shares, increasing the earnings per share available. This has an indirect effect on prices of making the stock appear to be more worthwhile to the mass of investors and they maybe willing to pay more for each share.
2007-03-15 02:13:31 · answer #2 · answered by gosh137 6 · 1⤊ 0⤋
The stock price is determined by the market (people). Back to basics in supply and demand. The less the supply, the higher the demand, in which case the stock price will rise. But if the market dislikes the stock, they will try to get their money back ASAP by selling at a cheaper price. In effect influencing other to seller their stock at a cheaper price.
2007-03-15 02:47:55 · answer #3 · answered by denxxchua 3 · 0⤊ 0⤋
The price of stock will rise the more valuable the stock is. Stock is a claim in the corporation. So if the corporation is doing well the stock price will go up. When it does not go well the price falls.
2007-03-15 02:28:52 · answer #4 · answered by ? 1 · 0⤊ 0⤋
based on incoming investments&economic growth of the country
2007-03-15 02:22:58 · answer #5 · answered by azeez 2 · 0⤊ 1⤋