The stock market works like any other market. Someone has something (shares) they want to sell, so they list them for sale at a certain price. If no one wants to buy the stock at that price, they don’t sell. If the seller is motivated, they will lower the price until they sell. What you see on BNN, or Yahoo Finance, or your brokerage platform, is the last price the stock sold for (with some variance depending on delay and volume, of course).
If you’re asking how stock value is determined, well that’s a much bigger question, and I don’t think I can ELY5.
Latest Answers