What’s the ‘need’ for the stock prices to change every minute?

Question

What’s the ‘need’ for the stock prices to change every minute?

In: Economics

Answer 1

The price of the stock is determined by the last sale of the stock. So if I buy 100 shares of XYZ from you for $10, the price is $10. If 5 minutes later Joe buys them from me for $9, the price is $9.

There is no need for them to change every minute, but there are so many buyers and sellers that prices change constantly.