How, exactly, is a share price decided or dictated?
February 8, 2011 3:27 PM Subscribe
Explain to me the stock markets...
posted by dougrayrankin to Work & Money (17 answers total) 6 users marked this as a favorite
I know that (for example) Steve Jobs taking medical leave is potentially bad news for Apple hence their share price will go down, but how exactly is it decided what the share price of a company is, and how much it goes up or down in response to certain news? What I'm trying to understand is... why does a share price go up or down by a specific amount? Who decides this? What is the process exactly by which share prices fluctuate. I have these ideas of a big brain in a jar deciding how much a certain news item will influence a share price and need a clear and simple answer. Hope me!