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How does a share price change? What is the process of changing the price of any share | Why the share price change

What is Share Market?

In this article, we will know what is Share Market, what exactly is Share, and also know what is Share Market? Let's see first-


    How Does Share Price Change

    What is share?

    Shares are also known by some other names – such as STOCK and EQUITY.

     

    Stock, Share, and Equity are all the same.


    Share - Meaning of Share

    "Share means, on dividing the capital of a company into small equal parts, which is the smallest part of the capital, that part is called SHARE."


    For example, the total capital of an ABC company is 1 crore, and the company divides its capital of 1 crore, 1 lakh different, equal value parts, now each part divided is the smallest of the company's capital. There is a part whose price is now 100 rupees, this small part of capital is called SHARE


    In this way, if the capital of ABC company is divided into SHARE, now the capital of the company will be called SHARE CAPITAL, which will be as follows –


    TOTAL NUMBER of SHAREs X Current SHARE PRICE = SHARE CAPITAL


    1,00,000 (One Lakh SHARES) X 100 (Share price of one share) = 1,00,00,000 (1 Crore Total Share Capital)


    Shares – a part of the company's capital

    Now you understand that SHARE means, a part of the company's capital, that is, whenever you buy SHARE, and pay the money, you are giving capital equal to the value of the SHARE purchased by buying SHARE,


    And the person investing capital in BUSINESS is the owner of BUSINESS, in this way the number of shares you have in a company, you become the owner in that company, equal to the value of those shares, like –


    If you have 100 shares of State Bank of India and if the price of one share is Rs 300, then it means that you have given 100 shares in State Bank of India X 300 = 30,000 / - (Thirty thousand rupees) as capital is, and you are a sharer in the profit and loss above this 30 thousand rupees,

    That is, you are the owner of the State Bank of India equal to 30 thousand rupees.

    How does a share price change?

    When you enter the stock market, you have many questions in mind such as How does a share price change? What is the process of changing the price of any share? How does the share price change? Today we will know the answers to these right questions in this article.

    Why the share price change

    How does a share price change?

     Whenever the stock market is open, the price of all the shares starts changing to the red-green mark. When someone buys a stock, the price of the stock changes with the green mark, and when the stock is sold, the red mark also changes its value, indicating that an investor has just sold the shares.

     Due to demand and supply in the stock market, share prices decrease and increase, you must have heard all these many times, but do you know how to buy or sell shares from your trading account in the background? Process. Today I will tell you what is the process of changing the price of a share.


    What is the process of changing the price of any share?

      As soon as an investor places an order in the stock market from his trading account, he moves from the order broker's platform to the system of the stock exchange and assigns a unique number to that order as well as to that trade. A timestamp is given to find out what time the trade is held. Once the unique number and timestamp are given to order, it is then listed in the order book. This order is visible to all orders that are listed in the order book, they are executed according to price priority and time priority.


      Price priority means that any two different orders that are placed at the same time will be executed before the order that is priced higher and time priority means whether any two different orders are the same Are priced at. If you have gone, the order that was placed earlier will be executed first. The price of any stock is compared to its current price in the list of best buy and best sell, in easy language, the highest price is ready to buy the stock, its order tops the list of best buy and who the seller is. At the lowest price, its order will top the list of Best Sales, thus all orders are sold to those who buy at the right price and those who sell at the right price.

    How does the share price change?

    How does the share price change?

      If the business of a company is doing well and the company is making a steady profit, then the demand for the stock of the company will increase, which will also increase the share price of the company and if the company is losing business, then the demand for the stock will decrease as well Will reduce the share price. It is the only rule of the stock market under which a stock's direction is determined in the long run whether the stock will depreciate or increase. The change in the price of one share per day comes according to the daily demand and supply, if someday more people buy, then the price of the share will go up and if some days more people sell, the price share will decrease.


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