Who will determine the value of stock of a company?
Stock prices or values, get determnined by the supply/demand factors at play in a market environment. The dollar value gets determined by the sum total of all buyers and sellers at a particular point in time. So, if the 10 stock goes on the market at 10, and quickly drops to 5, that means the people interested in selling at that moment were much more than the people wanting to buy. It is very similar to asking and answering questions here. At any given time, you may get as many as a hundred answers, or as little as one answer, depending on mood factors, or who is sleeping and who is active…etc. So, that 10 figure changes very rapidly as that stock goes to the stock market.
The stock price of a company is determined by many factors. Some of the factors are demand. If the company is believed to do good, many people will want to buy the stock, pushing the price upwards. The interest rate also determines stock price. When rates fall, stock prices go up, when rates increase, stock prices go down. Dividends play a major role also in determining stock price. The dividend discount model is used in this case. Also the companys market news and market status also determine stock prices. One more factor is the company ratings.
