Stock prices change everyday by market forces. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. Understanding supply and demand is easy.
In respect to this, what determines the value of a stock?
After a company goes public and starts trading on the exchange, its price is determined by supply and demand for its shares in the market. If there is a high demand for its shares due to favorable factors, the price would increase.
Likewise, what influences a share price?
Demand factors that can affect share prices include company news and performance, economic factors, industry trends, market sentiment and unexpected events such as natural disasters. Demand gives shares value. If there is no demand for a company's shares, they will have no value.
Can a company run out of shares?
Companies don't run out of stock because they only sell it once. An IPO happens if some of the shareholders want to be able to sell their shares more easily, or if the company needs money. If the shareholders want to liquidate their stock, then they sell it on an exchange.
Who decides the share price?
After a company goes public and starts trading on the exchange, its price is determined by supply and demand for its shares in the market. If there is a high demand for its shares due to favorable factors, the price would increase.