172k views
3 votes
Based on your knowledge of the Stock Market; how do stocks represent ownership in a company, and what determines the price of a stock?

User FilmJ
by
4.9k points

1 Answer

2 votes

Step-by-step explanation:

When a stock is sold, a buyer and seller exchange money for share ownership. The price for which the stock is purchased becomes the new market price. ... After a company goes public, and its shares start trading on a stock exchange, its share price is determined by supply and demand for its shares in the market.

User Pkit
by
5.3k points