What factors determine the value of stock?
149597
There are several things that can determine the value of a stock. I'd say just how the company is doing profit wise can factor into the value, or who owns the company can factor.  Also, if the company has good business doings. I mean if your not dealing with the mob that is a plus, and maybe the company donates money to charity groups, etc. I think them are 3 good factors that help determine the value of a stock.
685194
based on supply and demand.  Too detailed to explain in a q&a.  If you're in school, take a finance and economics class.
719911
One typically doesn't "set the price" of preferred stock itself.  The price is determined by what a willing buyer will pay.   \n\nThat said, one can set the "par value" of preferred stock, which usually has no relationship whatsoever to the actual market value of the stock.
125446
P/E is the price of a stock compared to the earnings per share.  It is used as a valuation tool to figure out if a company is undervalued or overvalued.  Usually the faster a company is growing their earnings and revenues, the higher the p/e is going to be (for example GOOG).\n\nA good way to use P/E to discover value in selecting stocks is to first start with a sector.  Find a sector that is in favor.  Look up the average P/E for that sector.  Different sectors will have different P/E ratios.  You have to compare apples to apples.  Look up which companies are growing the fastest and that have the most promise in that sector and then compare their P/E ratios to the sectors P/E ratio.  All other things being equal the company that is growing faster than the sector with a P/E less than the sector would be considered undervalued and you might considering buying it.
1178727
There are so much fluctuations in the trading of a stock sometimes it's hard to quantify one specific event.  Besides, bonus shares that are issued often is just a very small % of the total shares outstanding, you may or may not see any stock price impact because of that.
814383
demand.\n\nok, the price that can be set for a product and the amont of profit that can be made is automatically set by the relationship between how many people want it and how much there is of the product. if demand is high and the suply is low the price will rise and if demand is low and the suply is high the price will fall. stablity is achived when the two are balanced.
476331
It deals with the capital structure of the company.  As the company has more debt and less equity, it's more highly levered and thus more risky, leading to a higher P/E.  With more stock than equity, there's less risk, which would probably trade at a lower P/E.
152072
The answer is by using simple mathematics.\n\nFirst you need to decide how much of each stock you are going to buy - since not all stocks are priced equally some would be $20, other $400 and some 0.05 cents.\n\n$100,000 over ten stocks... Decide what ratio you will hold of each stock. E.g. 6:3:4:1:9:4:3:7:9:2\n\nSo totalling the ratio is 48. Now you can use a combination of the ratios and fractions to find out how much stock you can hold with your $100,000.\n\nI may have left you out on a limb there - but this calculation is uneccessary. Why don't you just buy your stock one by one until you run out of money? :P\n\nOK Lets try the example with 2 stocks and $100K\nyou want the weighting to be 3:4\nso you want \n3/7ths of your money to go to 1 stock\n4/7ths of your money to go to 1 stock\n\n3/7*100K=$42857.14\n4/7*100K=$57142.85\n\nNow say stock ZXC was $5 each and stock ABC was $67\n\nNow you go:\n$57142.85/$67=852.88 Stocks\n$42857.14/$5=8571.43 Stocks\n\nThere you go. Now do the similar calculation with your ten stocks! Haha!\n\nGood Luck!
1155844
When you buy a share of stock, you're buy a piece of the company, even if it's only a very small piece.\n\nYou become an owner of that company along with anyone else who owns stock in it. Each share has a voting right, so you can vote for the board of directors, the auditors and any other issues.\n\nYou make money if the company does well, and receives more income than it costs to produce that income. You'll make money either by receiving a dividend, by selling the stock to someone else for more than you bought it, or both.\n\nCompanies also have down periods, and could lose money during this time, but only if you sell your stock. You may decide to hold on and wait  it out. Look at the people who held on to Apple Computers.\n\nThere are a lot of books that explain the stock market. You can find them at your local library.
1166230
property AND it's more relaible. (if something happens to it you're not at loss, you have insurance)\n\nstocks=== they can go down in value, or the corporation can fail: ie enron.\n\nmutual funds===as reliable as stocks, income is never certain, and the chance of loss is there.
551272
Spot prices are influenced by supply and demand. There is a slight arbitrage between trading facilities, but it is usually very small and does not last long.
1020508
the best stocks to buy can be determined by ones risk appetite and ones investment needs .stocks with good div's paid continously are recommended to older investors.Best way to determine good stock is to do a little research into the activites of the company the growth prospects of the company the profit margins and the competetion faced by the companies.monopolistic companies and patent holding companies are good for short term investment
954677
Stock market indices are calculated from the quotes of the stocks of which they are composed. It is therefore a sort of average. If an index rose 1% to 445, then it just means that this average stock price rose one percent.\n\nThe number of stocks included and the exact way the calculation is done, is different from one index to another. \n\nFor instance:  the Dow Jones is composed of 30 stocks, the 30 biggest companies in the US and the value is just the sum of the of the values of the composants, multiplied by a suitable number.\n\nThe SP 500 contains (you guessed it) 500 stocks, weighted by their size, and is therefore more representative for the economy as a whole.\n\nOther indices take also in account the number of stocks in circulation, the amount of stocks exchanged each day, etc.
1127976
Liquidity ensures more buyers and sellers for the stock. That ultimately means that there is more demand and supply. It is simple economics to state that price is a factor of demand and supply, thus is the correlation between liquidity and stock price.
85254
The amount of income the company made divided by the number of shares of stock it has issued.
574240
To get indepth knowledge of how stock market works you will have to devote time and have patience.\nStart watching CNBC and NDTV Profit and start reading Economic Times.\nSlowly you will be able to understand all the factors which drive a share market and also learn about the performances of individual stocks.\nAlso on net you can visit www.moneycontrol.com and www.profitfromus.com . These sites ahve Q&A sections and Blogs which will help you in better understanding on the subject.
1023165
The price of stock varies depending upon the initial offering price, the number of shares available, and the demand.