I get that supply and demand sets the price but WHO actually dictates the price?
Like do a special group of brokers negotiate a price, make a transaction and then that is the price on the market? Is it an algorithm and if so How did this work before computers
In: Economics
Buyers and sellers of the stock. Buyers submit orders at the price they’re willing to pay, sellers submit asking prices they’re willing to accept. When they agree, the trade gets executed… this matching buy and sell orders are what the stock exchanges do. As buyers and sellers get matched, the prices keeps shifting to match buy and sell demand. The guy who won’t sell at $40 decides to sell at $40.25. A buyer who wants in sees the movement up and puts in an offer for $40.50 and another seller is willing to sell.
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