How are prices computed?
For each share that you buy, the stock’s price goes up. Therefore not all the shares that you buy will be bought at the same price. Each will cost a little bit more than the previous one. The opposite mechanism works when you sell. Each share that you sell, will be sold at a slightly lower price than the previous one that you sold. As a result, prices fluctuate according to supply and demand: the more shares are bought, the higher the price – the more people sell their shares, the lower the price will fall.
