What causes a share price to increase or decrease?

For example, any increase in the number of shares on the market would bring the price down, assuming demand remains the same. Equally, any reduction in demand – perhaps on the back of changes in a company’s senior leadership – would reduce the share price, so long as supply remains constant.

How do I buy and trade shares online?

Share trading is one of the most popular forms of trading on offer. Whether that be in stock markets or trading derivatives like CFDs. Join Capital.com and start online stocks and shares trading. If you trade CFDs on shares you are exempt for stamp duty that you would pay on shares normally.

What is the definition of a share price?

A share price – or a stock price – is the amount it would cost to buy one share in a company. The price of a share is not fixed, but fluctuates according to market conditions. It will likely increase if the company is perceived to be doing well, or fall if the company isn’t meeting expectations.