What is stock price?

The term stock price refers to the current price that a share of stock is trading for on the market. Every publicly-traded company, when its shares are issued, is given a price – an assignment of their value that ideally reflects the value of the company itself.

What happens if a NASDAQ share price falls below $1?

A US share must be priced at $1 or more to be covered by NASDAQ. If the share price falls below that level, the stock is "delisted" and becomes an OTC (over the counter stock). A stock must have a price of $1 or more for 10 consecutive trading days during each month to remain listed.

Is a share price a sign of value?

The opposite also could be true as well, but the share price alone is no sign of value. Market capitalization is a clearer indication of how the company is valued and gives a better idea of the stock’s value. Also known as market cap, it's listed with every stock's price quote.

How do stock quotes work?

Many stock quotes will also show the number of shares that are available for trading at both the bid and the ask price. Stock prices are subsequently determined by changes in supply and demand. As more investors demand to buy shares, the price of the security rises.