Is there any way to change stock price except buyers and sellers? I mean the stock price depends only in buyers and sellers?
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Yes in a planned economy, stock price can be set by decree, like in China they can set no selling below a certain price in times of high volatility.– base64Commented Nov 17, 2020 at 11:22
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1@base64 , those sort of controls happen commonly on the NYSE/Nasdaq.– FattieCommented Nov 17, 2020 at 13:55
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@Fattie don't the Exchanges suspend trading if the price of a stock falls to far in a day (which probably serves the same purpose as base64's partisan comment)?– RonJohnCommented Nov 17, 2020 at 16:40
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What's the background of your question?– RonJohnCommented Nov 17, 2020 at 16:40
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3 Answers
The stock market is an auction and stock prices reflect that as buyers and sellers increase or decrease their bids and offers. Corporate events also affect share price (stock splits, dividends).
answered Nov 17, 2020 at 11:23
I think you have a misunderstanding of what a 'stock price' is.
'Stock prices' don't exist as independent objects, they are simply the reporting of the last executed trade. If no trades are made, no new 'stock prices' are generated; the last executed trade stays the current 'stock price'.
Therefore, the only way to change a stock price is by executing a trade at a different price - which means you need a buyer and a seller to agree to it.
Yes, the stock price for an IPO is set by the company and its underwriters, not by a market price established by buyers and sellers, because there are no buyers when the price is set (except insofar as the underwriter is a buyer of last resort). Of course, within a few seconds after the IPO, a normal market price will emerge.
answered Nov 17, 2020 at 16:00
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1An IPO doesn't change the price. As you say, it sets the price, which is not the same thing.– RonJohnCommented Nov 17, 2020 at 16:41
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@RonJohn I would regard going from the price being undefined to a defined value as a change. Commented Nov 17, 2020 at 16:57