Tuesday, August 24, 2010

Are stock prices manually controlled by company officials or stock market officials?

Also, what about the streaming screens provided by Stock Brokerage companies? Are any of those manually controlled? Or is there a set formula that drives those prices up and down?Are stock prices manually controlled by company officials or stock market officials?
Stocks go up and down based on the amount that investors buy or sell the stock at. Buys make the stock go up. Sells make the stock go down.Are stock prices manually controlled by company officials or stock market officials?
I don't think your definition of ';manually'; is defined clearly.





No is more clearly the answer to your first question for all stocks that are traded on public, regulated markets -- company officials are out of the loop. Stock market officials are regulators and auditors; not daily operators.





Your second question is much more difficult to answer, because what you are asking isn't clear. The vast majority of trades are automatically cleared -- meaning that once someone decides to sell or buy a stock at a particular price, the trade itself is taken over by computers. In addition, a significant amount of the dollar volume in most daily trading is the product of systems trading. A basic (simple) explanation would be trading that is triggered by some change in the marketplace that causes computers to trade very quickly without any human intervention at all.
For each stock there is something called a bid price and an ask price. The bid price is what someone who wants the stock is offering to pay and the ask price is what someone who owns the stock is offering to sell it for. The difference in these two is called the bid-ask spread.





These are typically large institutional investors doing the trading. So unless you buy an Initial Public Offering you aren't buying the stock from the company but rather from other investors.





The price that you see on the ticker reflects the price that the last trade occured at. It usually also gives the volume of the trade.





To put it simply, the price moves based on how many people there are looking to buy versus how many are trying to sell. More buyers will drive the price up and more sellers will drive it down. Just like any other market.
Its all rumors, No-one can force people to invest in stock.No one can control stocks and market.Yes people can spread rumors because for that u can do without any investment and u can control as well ;)

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