For instance: if the stock of Company A opened at say $10 and at the end of the day it price was $11. How did the exchange arrive at this exact price?|||Suppose i own some stock of the said company, i offer to sell it for $10.50. Another person, willing to put money in that stock, will buy the stock at $10.50. So, the stock is now trading at $10.50. This scenario continues and the stock reaches $11 by the close of the day.
Its purely based on supply and demand. More demand, the prices will zoom up!|||simple, my dear friend.
the market influence-that of demand and supply.
always remember that a stock is a commodity.
cheers.|||its not exchanges which arrives at a prices,its the seller and buyer which arrive at that price for a stock.|||It depends on the requirements.
If there is a demand then the price of the stock will increase, if there is no demand then the price will decrease.
At what price that the share traded in a day while closing time of the market, that price is the closing price of that share on that day|||It all depends are how much of the stock was bought and sold for that day. That is the main factor.|||it depends on the traders who buy and sell this stock in the exchange. It is called the demand - supply theory. If people feel that the price of a stock is going to increase in the future due to some factor, then the demand for this stock increases and the supply decreases. In such a case, the price of the stock goes up.
Similarly if traders feel that the price of the stock should come down fro some reason, then the supply increases and demand for this stock comes down. Thus the price of the stock comes down.
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