Explain how buyers and sellers factor into setting the stock price for a company's shares.

Question

Computers & Technology

Ayaan Vazquez

15 February, 05:57

Explain how buyers and sellers factor into setting the stock price for a company's shares.

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Answers (1)

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Haylee Levine · Answer 1

The stock price of a company share depends upon the supply and demand. And demand is more if more buyers have positive intent towards the company services or end product. Also if the services and end product are trending, the more buyers buy them, and hence demand increases, and hence the value of the company shares, and hence the stock price.

Explanation:

The stock price of a company share depends upon the supply and demand. And demand is more if more buyers have positive intent towards the company services or end product. Also if the services and end product are trending, the more buyers buy them, and hence demand increases, and hence the value of the company shares, and hence the stock price.

Thus as mentioned above, the stock price is down when less buyers shows the intent to buy, and the demand hence is low. The sellers show interest only if demand is high, and sometimes if company sells for less amount and gives more profit margin.