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Imagine a company is newly listed in BSE. It is offering 100 share each with a face value of 10 rupees. Let A, B, C & D are 4 persons who shows interest in buying that share. Let's consider that each of them buying 25 shares and they are not trading the share with any one. What will happen to the share . Does it remains in the same price ? Or it depends on the growth of the company ?
I am new one to share market and not good at these stuffs. So kindly help me.
It doesn't actually really have a price until person E comes and wants to purchase shares, or one of A, B, C, or D decides they want to buy more shares or sell shares they already have. These decisions might depend on the growth of the company.
If none of those things happen (the stock is not being traded at all), then you really have no way to know what is the current price of a stock except by making an offer to buy or sell yourself, and see if the offer is accepted.
The value of a stock is worth what someone is will to pay for it. Its basically as simple as that.
Yesterday someone was willing to buy Maxwell Technologies at $3
Today Tesla board thought it was worth $4.75 and are planning to buy all the shares for $4.75. So today its worth 55% more.
