Question

Once stocks are on the market, which best explains how their prices are set?

Answer 1

It is affected by supply and demand.  If a company’s stock is doing well and earning then more people will buy it and this raises the prices.  For stocks’ that are not doing well and have low earnings then the prices for such stock are low.

Answer 2

Answer:

Prices fluctuate on the basis of demand.

Explanation:

At the utmost basic level, supply and demand in the market manage stock price. Price times the amount of shares leading (business capitalization) is the value of a business. Analyzing just the share price of the two organizations is trivial.

The market is the wide collection of investors and merchants who buy and sell the stock, driving the price higher or dropping. The final purpose of purchasing shares is to produce wealth by purchasing stocks in organizations you suspect to do great, those whose noticed value (in the order of the share price) will increase.