Puzzling over this one:
What mechanism sets the price of shares as shown on the share price sites?
I'm not refering to supply and demand, what I am stuck on is how the change in demand is then translated to a change in the listed price.
Is it simply the price of the last sale?
Is it based on the average asking price being set by sellers?
If there are no purchases does the price drop till someone does buy?
What mechanism sets the price of shares as shown on the share price sites?
I'm not refering to supply and demand, what I am stuck on is how the change in demand is then translated to a change in the listed price.
Is it simply the price of the last sale?
Is it based on the average asking price being set by sellers?
If there are no purchases does the price drop till someone does buy?
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