The share price is the price at which a particular share can be bought or sold. The share price is determined by the supply and demand for a particular company’s shares.
Factors affecting the share price
- When you have more buyers than sellers for a particular company’s shares, share prices usually risebecause these shares are in demand.
- When you have more sellers than buyers for a particular company’s shares, share prices usually fall because there are more of these shares available.
- If a company is very profitable, a share in that company will become more valuable because more people think that it is a good investment.
- Factors such as economicand political events also influence share prices.
