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How do stock prices go up and down?

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>inb4 simple demand and supply explanations

I want to know the exact accounting mechanics how the price is controlled or affected.

So lets say a stock is trading for $10 a share. The broker quotes the ask (buy) price as $10.5 and the bid (sell) price as $9.5. There are currently 1,000,000 shares of Stock A in the market.

Anon #1 buys 500,000 shares of Stock A from Anon #2 at $10.5.

Anon #2 sells 500,000 shares of Stock A to Anon #1 at $9.5.

Anon #3 is going to sell the rest of his 500,000 shares once the price is updated after the transaction between Anon #1 and #2 is completed.

Exactly in what direction will the price of Stock A move for Anon #3 to sell his shares to Anon #4?
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>>1910333
The price doesn't change until there's a deal between Anon#3 and Anon#4. It could be that Anon#3 thinks that the correct shareprice is $11 and Anon#4 agrees or Anon#3 might think the correct price is $9 and Anon#4 might again agree so the new shareprice would be $11 in the first case and $9 in the second case. Retail investors don't have direct market access so we're at the mercy of brokers and market makers to sort out the details (they make their money off the spread.)
>>
Very interesting question. Could someone also explain what exactly candlesticks show, and how they relate to price changes?
>>
Well if Anon 3 is the only one with anything on the market, they can sell for whatever they like. It only fluctuates with what people are willing to buy/sell at. If I set a buy for 500 shares for $10.50, then when someone puts a sell order in for $10.50, I will buy them. If I put a sell order in at $10.50, they wont sell until someone is willing to buy. And the last transaction will be the current "price".
>>
ticker price is probably a moving average of the very most recent transactions recorded by the stock exchange
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>>1910333
nice trips

whos that semen demon in the pic?
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>>1910749
I'd like to know this as well
>>
File: 53ed6cb0d767ca5c9139946d9ad58875.jpg (113KB, 736x1105px) Image search: [Google]
53ed6cb0d767ca5c9139946d9ad58875.jpg
113KB, 736x1105px
Eun Bin Yang?
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>>1910333
If somebody sells half the company shares, it probably means he's not planning on going down with the ship
>>
The price of a stock is the lowest buy offer.

The value of a stock is the highest sell offer.

that's it. its just a marketplace. If I want to sell a stock, I can a. Set a price I want to buy it, in which case my order will go on the marketplace and execute when that price is hit or b. Sell for whatever the lowest buying price currently offered is. Selling is the same, I can a. Set a price I want to sell at or b.immediately sell for the highest offered buying price. Price changes occur because people buy up all the stock offered at a given price (and thus, the price goes up because now the higher cost offer is now the lowest offer) or put up new offers at a lower price (thus lowering the lowest offer).

Its really pretty simple and intuitive once you understand it.
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>>1910381
The candle stick is just the distance between the highest buy offer and lowest sell offer.
>>
>>1911377
> Set a price I want to buy it, in which case my order will go on the marketplace and execute when that price is hit or b. Sell for whatever the lowest buying price currently offered is.

ops that should say buy for whatever the lowest selling price currently offered is.


>>1911385
to expand on that, if you sell right there it will be for the price at the bottom of the candle stick and if you buy it will be for the price at the top of the candlestick.
Thread posts: 12
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