What makes the price of a stock fluctuate?
Stock prices change daily under the pressure of market forces.isi.e. according to supply and demand. If more people want to buy a title (request) that sell it (offer), the price goes up.
Thus, the price of a share is linked to its listing place: it is quite possible for a company to trade at different prices, generally by a few percent, depending on the places chosen. Once the company and the place of quotation chosen, it is easy to know the price of a share. But where does this price come from?
Stock market prices are determined by supply and demand. Is this market-determined share price the “right” price? The intrinsic value of a share depends on the value of the company of which it represents a part of the capital.
Although they vary according to eras, sectors of activity or markets, all these methods can be combined, so as to estimate, independently of its quotation on the market, the value of a share. If the stock market price is below the theoretical price thus determined, the security is deemed to be attractive.
How to define the fair price of a share? – BforBank Action: what is the right price? Stock market prices are determined by supply and demand. Is this market-determined share price the “right” price?