How is the Stock Price Determined? | Stock Market for Beginners (Part 1) | Lumovest

How is the stock price determined? In this video, we'll explain how the stock price is calculated in simple terms and take you through the logic behind how everything works. This is perfect for stock market beginners who want to learn investing. People will tell you that the stock price is determined by market supply and demand, but that's really vague. For example, what's guiding how much people supply and demand for a particular stock? The truth is, it really comes down to the intrinsic value.

Let's establish what the stock price is. The headline stock price we see quoted in the stock market is the price at which the latest stock transaction occurred. It's not the price at which you can buy the stock but the price at which the last trade happened.

Buyers of a stock determine how much they're willing to pay for a stock by calculating the intrinsic value of the stock. Likewise, sellers will do a similar exercise to determine the price at which they would sell. And when both the buyer and seller agree to a price, they make a trade and the stock price changes to reflect this latest price.

Therefore, intrinsic value is the guiding force of the stock price.

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[Lumovest]

Hey guys! Do you now understand how the stock price is determined? I hope so. If not, tell me where you're stuck and I'll try to clarify things for you.

[HugoBergmann-lund]

Biggest lesson i learnt in 2023 in the stock market is that nobody knows what is going to happen next, so practice some humility and low a strategy with a long term edge.

[AmbroseSinclair-ynrl]

What is the best strategy to succeed in the market now for someone with more or less than $7k

[vmkkannan]

Really clear explanation about how stock price changes. i have seen around 50+ videos on the same topic, but this is worth watching it.

[AnishStocks]

This is the only video which actually explained technically that why does the stock price changes & in which direction. Thank you very much Sir!

[utilityunified]

Best Videos on Stock Market i ever watched...thanks from India, lotsa love !!

[johnyhawkahsan]

Best video on stock market ever.
Before this whole explanation of "future value" and "intrinsic value", I thought stock market was just a gamble but now I understand how the price of a share is really determined.

[colleen.odegaard]

The market is more volatile than ever. I've been holding cash since '20 pandemic crash, but just went "all in" bought up $250k worth of ETF's & individual stocks at discount, and hoping to average down on ailing companies, , open to any recommendations that come in handy

[mathiasbrekkan]

I'm trying to get my girlfriend started with investing and she gets fed up when I start babbling about philosophy, understanding P/E ratio, understanding revenue, earnings, eps, ROIC, NOPLAT, dividends and so on... This video was very well put together easily and straightforward explained, with good animations!

[balajitr]

Best video I have seen in recent times, great work !!

[saddestdayever]

Really clear explanation on stock prices! I am an accounting student and I am currently taking Intermediate Accounting 2 and I just couldn't figure out how stock prices would be accounted for and how much cash is going to be received! Thank you so much!

[lamemeshitface]

Recommendation: Add subtitles for beginners to better understand along the way :)

[mahsadoorfard]

I learned a lot. Thanks for simplifying everything.

[miguelcrespopetao]

This gotta be the new youtube financial GOAT. Very clear explanation sir 👍🏻

[taoyuanheng]

i definitely recommend this video to my friends🤗. Awesome.

[ZA-sydn]

All my life I’ve been interested in the stock market but not understood or had stupid explanations, this is the ONLY video I’ve ever seen that has been useful. Well fucking done mate b

[ebrahimalabadi]

Thx man for explain how stock market determine and also fluctuates !!

[mayurwalvekar]

I appreciate your conceptual clarity..!

[pustiinovalex]

I THANK YOU SO MUCH!!, THAT'S WHAT I'VE BEEN SEARCHING FOR A LONG TIME

[whodat]

One of the best videos I've watched on stocks