How does the stock market work? Who decides the price of stocks? What is the logic behind the valuation of stocks?
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The stock market is a platform where investors can buy and sell shares of publicly traded companies. Stock prices are determined by supply and demand dynamics—when more people want to buy a stock, its price typically goes up, and vice versa. The price of stocks is influenced by various factors, including...
read more The stock market is a platform where investors can buy and sell shares of publicly traded companies. Stock prices are determined by supply and demand dynamics—when more people want to buy a stock, its price typically goes up, and vice versa. The price of stocks is influenced by various factors, including a company's financial performance, industry trends, economic conditions, investor sentiment, and geopolitical events. Investors analyze these factors to determine the perceived value of a company's stock, using methods such as fundamental analysis (examining financial statements, earnings, and growth potential) and technical analysis (studying price patterns and trading volume). Ultimately, the price of a stock is a reflection of what investors are willing to pay for a share of ownership in a company, based on their expectations of future earnings and growth potential. read less
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The price of stocks is determined by the forces of supply and demand in the market, with buyers and sellers negotiating prices based on their perception of the company's value and future growth prospects.
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Market only run on the basis of supply/demand and most important part is liquidity.
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The stock market is a platform where investors buy and sell shares of publicly traded companies. Here's how it works and how stock prices are determined: Stock exchange Supply demand Bid & ask Market participants Valuation of stock Overall, the stock market operates as a dynamic marketplace...
read more The stock market is a platform where investors buy and sell shares of publicly traded companies. Here's how it works and how stock prices are determined: Stock exchange Supply demand Bid & ask Market participants Valuation of stock Overall, the stock market operates as a dynamic marketplace where prices are determined by the interaction of supply and demand, influenced by various factors and participants. The valuation of stocks depends on the perceived worth of the underlying company, which is subject to interpretation and analysis by investors. For learning whole concept of supply and demand join our classes read less
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