How or why do stock prices change and who changes them? Is it an automated system that raises prices if people keep buying and vice versa?
In: Economics
>How or why do stock prices change and who changes them? Is it an automated system that raises prices if people keep buying and vice versa?
The “price” or the stock is the last amount of money that was paid by a buyer to a seller for that stock. The next time it will sell for whatever current selling offer the next buyer is willing to meet. If there are 5 people willing to sell 1 share @ 5€ and 1 person willing to sell 1 share @ 4.99€, then a person looking to buy a share at the cheapest will put the new share price at 4.99€ because they will be matched with that particular offer.
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