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The share price is the current value at which a share or other financial instrument is traded on the stock exchange. It is the amount buyers are willing to pay and sellers are willing to accept. The share price changes continuously during trading hours.
The share price is determined by supply and demand at any given moment during the trading day.
When more investors want to buy a share than sell it, the share price rises. When more investors want to sell than buy, the share price falls. The share price is therefore not determined by the company itself, but by the market.
News about earnings results, economic developments or changes in expectations can influence how investors act, and therefore affect the share price. Because supply and demand continuously change, the share price can move per minute or even per second.
Short example:
Suppose a share currently has a share price of €25. An investor places a buy order at €25 and another investor wants to sell at €25. The transaction is executed at €25, which becomes the new share price. If several investors are then willing to pay €26 and sellers are only willing to sell from €26, the share price rises to €26. If many investors want to sell at €24 and buyers are only willing to pay €24, the share price falls to €24.
Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult a professional advisor when making financial decisions. The information and tips provided on this website are based on the personal insights and experience of our analysts and are intended for educational purposes only.
