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.

How is a share price calculated in an initial public offering?

In an initial public offering, the share price calculation is set based on the company’s performance and net present value. The stock price will begin to fluctuate once trading begins, based on the buyers and sellers of stocks in the secondary market.

What is a share price & how does it work?

A share price, also called stock price, is the cost of buying one share in a company. This share price fluctuates as per the market conditions and is determined on a real-time basis by a stock exchange. How can I see share prices online? You can see share prices online through the official stock exchange websites, such as NSE and BSE.

How to calculate stock price?

There are a variety of ways to calculate the stock price, so let’s now look at the different ways. We can calculate the stock price by simply dividing the market cap by the number of shares outstanding. In other words, we can stay that the Stock Price is calculated as… Let’s now think about why we can calculate it this way.