Home / Investing / Blog article: Stock price and trading?

| RSS

Stock price and trading?

October 26th, 2010 | | Tags: , , | 1 Comment | |

coins

I was wondering what determines the day in day out price of a stock traded on a and what implications does this have for the company? Are the that are traded every day on NYSE and NASDAQ primary stock (issued directly from the firm) or secondary stock (traded between investors)? For example, if I wanted to buy some Disney stock and went on etrade to buy them would I be purchasing stock from the company or from another investor who is selling their stock in Disney?

Follow Discussion

One Response to “Stock price and trading?”

  1. Chicago Says:

    The price fluctuations in a stock are based on the perceived value traders have of the company. If traders believe the company is good, they will purchase the stock. If there are more buyers of a stock (demand) than sellers (supply) the price will rise. The opposite is also true if traders believe the company is not doing well.

    The implications this has for the company are how much the company is valued at, and also how the company is doing. If the stock has been steadily going up, then the idea is that the company is doing better and better.

    When you purchase a stock from your brokerage you are purchasing stock from the secondary market (not directly from the company).

News results

    Web results

    Image results

     the world Market s becomes easier, trading tools to give you prices ...
    Trading the country's two stock exchanges will resume at 11 am instead ...
    Stock Trading Strategy
    Stock Market Trading Oil Prices | Stocks and Selling Strategies
    Stock Market Trading Oil Prices | Stocks and Selling Strategies
    orcl stock pick the oracle s stock price is clearly trading in an ...
     

    Want to link to this article?
    Copy and paste the code below into your web site (Ctrl+C to copy). It will look like this: Stock price and trading?