Tuesday, October 17th 2017

Question

Who determines stock prices?

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19th Mar 2011 by Mikey

Market Capitalization (bookie) sets company suggested stock price; and trading adjusts it further; adjusts the exchange's electronic book. What factors can adjust this electronic book? Who?

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23rd Nov 2009 by Michael Haltman

The determination of stock prices is supply and demand driven. At any given level of a stock there are a number of bids and offers on the electronic book. When buyers take out the offer (sellers), the stock will move up to the next offer unless a new seller appears at the current level. The same holds true for the sell side. There are a certain number of bids (buyers) at a certain level, and once all of the stock at that level is gone the bid will go down to the next level of buyers unless a new buyer appears at that level.

For example, you may see a quote 48 - 48 1/8 10x10. This means there is 1000 shares being offered for sale at 48 1/8 and a buyer for 1000 shares at 48. If someone hits the bid at 48 for 1000 shares, the next bid might be 47 7/8 for some number. Conversely if someone buys 1000 shares for 48 1/8, the next offer will be 48 1/4 for some number of shares.



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11th Nov 2009 by Gary

No one individual determines a stock price. What determines a stock price is the view by the one buying or selling stock and whether they believe a stock price will go higher or lower. In other words, the market determines the value of the stock, and nothing else. Some people attempt to manipulate stock prices, but that only works over a short period of time, as performance over the long term is what properly values the worth of a company, and nothing else.

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10th Nov 2009 In Stocks 3 Answers | 2381 Views
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