Others   

Stock Price

Thanks very much! This forum and members are superb!!

 

Solomonster - you are absolutely correct. It is the sentiment (or should I say psychology) that determines the value of a stock. The market (made up of the public plus the professional and institutional investors) determines the price. If there are more buyers, then the price goes up, if there are more sellers, then the price goes down. Very often the underlying "value" of a company (as shown in the financial statements) has nothing to do with rises and falls in an individual stock - it is more to do with sentiment, and ultimately the pyschology of those in the market.. that's why those who study the fundamentals (financial health) of a company may be right in the long term but profit little in the short term. Those who watch for the triggers that show a probability of a rise and fall (the technical analysts) will usually make more money in the markets, at least on a day to day or week to week perspective.. some opinions may differ, but this is just my experience..

 

I understand on public sentiment or supply/demand will "influence" on the pricing.



Can I say that stock price is similar with auction process (on the uptrend)? More valuable the item (the counter) and more people are willing to pay higher price? (Of course, it will be similar process to the downtrend)



Can someone confirm that?

 

good question actually. I'm a TA person and I believe that stock price movements are determined mostly by public sentiment. The fundamentals of a stock can be very good but if the sentiment is bad, the price will not do well. Vice versa is true also.

Of course, a FA person will tell you a different story.. haha..

 

if you stare at the price counter everyday, you will notice that prices keep changing. There are 2 prices, the buy and sell. Depending on market sentiments, if there are alot of people wanting to sell, and these people know that if they don't sell it fast, prices will drop, then they will dump their stock at the buying (bid) price. Once there are no more buyers at the current bid price, then the price will drop.

basically, supply and demand dictates the price.

 

Hi All,

My apologies to ask stupid questions. I am new on Stock Market. Just wondering, who decide the price of stock? I know supply and demand thing, but who decide $x or $y on buy/sell? I try to find some information, but i can't find any.

Perhaps, someone can share a light to me.