How Stock Prices are Set?

Firstly, when the IPO is introduced, the company determines the price of shares, but once the IPO is completed, the company does not have any role in determining the value of the shares, and the value of shares are freely determined the stock exchange based on the demand and supply.

If the number of shares sold in comparison to the Shares purchased is reduced, the price of Shares will increase and if the number of shares purchased is less than the Shares sold, the share price will be reduced.

After being registered in the stock market, companies have to periodically share all the important information with the investors and on the basis of this information, investors value the companies. Depending on this evaluation, the prices of shares are determined on the basis of increase or decrease in demand and supply of shares.