113k views
0 votes
Once stocks are on the market which best explains how their prices are set

User Moodh
by
5.1k points

2 Answers

3 votes
Prices fluctuate based on the demand of the stockĀ 
User Frankovskyi Bogdan
by
6.6k points
5 votes

Answer:

Prices fluctuate on the basis of demand.

Step-by-step explanation:

At the utmost basic level, supply and demand in the market manage stock price. Price times the amount of shares leading (business capitalization) is the value of a business. Analyzing just the share price of the two organizations is trivial.

The market is the wide collection of investors and merchants who buy and sell the stock, driving the price higher or dropping. The final purpose of purchasing shares is to produce wealth by purchasing stocks in organizations you suspect to do great, those whose noticed value (in the order of the share price) will increase.

User Joergbrech
by
5.5k points