What is 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.

Is a share price fixed?

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. How are share prices determined?

Does a share price reflect a company's value?

A share price reflects the value of a company. A highly-priced share may represent a valuable company, but if there are not many shares outstanding, it may not always be the case.

How are share prices determined?

Initially, share prices are determined through a company’s initial public offering (IPO), in which the price of one share is set according to the perceived supply of, and demand for, that company’s stock.