Why is Google’s stock priced at 129$ and Microsoft at 322$ for example?
In: 6
The stock price is the price of the last whole lot of 100 stock or more to trade on an exchange. A trade happens when someone places a buy order for a higher price then current sell orders or when someone places a sell order lower then current buy orders.
When people place buy orders, that raises the price of the stock or prevents it from lowering in price. When people place sell orders, that lowers the price of the stock of prevent it from rising in price.
Entire companies exist to profit from the difference between sell and buy orders.
Prices stabilize between the highest buy order listed and lowest sell order listed.
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