Saturday 31 August 2013

HOW STOCK PRICE GOES UP AND DOWN?

A company only issues limited number of shares.The individual stock price goes up and down according to supply and demand.



More people want to buy the stock,they ready to pay high and the price goes up.As the supply of shares of any stock is limited,when the price goes very high and buyers not ready to pay that price,the stock price starts to drop.



So,for a limited stock,more demand means price goes up and less demand means price goes down.


                Stock Market : How Is the Price of a Stock Determined?


No comments:

Post a Comment

Thanks