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What is Stock Price?

A stock price is the amount for which you can buy one share in a company. It fluctuates according to market conditions, daily, hourly or on secondly basis. If the company is doing well in general price increases and vice versa it falls if the company doesn't meet shareholder's expectations. Supply and demand is a key factor when it comes to determining share prices. It depends on how many investors want to buy the stock and how much stocks are available.

If more people want to buy a stock, then the price will rise. If more investors want to sell, share price will drop. Simply put bid price represents the demand while ask represents the supply of the stock.

There are three terms determined for stock prices.

» Stock Bid Price

» Stock Ask Price

» Average Stock Price

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