Let us assume there is a listed company x. Currently it has 100 shares issued to trade in free float market. Current price of stock is let say 10. Now please let me know if I purchase one share of company x at the market price of 10. How it will effect the stock price. And please add and exemplify some other scenarios whichever you find good to explain more. For more information let say promoters of the company holds 100 shares with them like 50% of the company is with promoters and the other half is with people who invest or trade in that company. If I've missed to tell or assume any other vital info. needed please assume it yourself while mentioning it. Thank You

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    Hypothetical scenarios like this have no relationship to how stock markets work and how stock market prices change. Apr 10 at 14:38
  • "Another assumption would be that every order will be executed on market price" Where does this market price come from? By "market price", are you referring to the price of the most recent trade (i.e the "last trade" price)?
    – Flux
    Apr 10 at 15:13
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    The "bid" and "ask" prices are how the price of a stock changes. See money.stackexchange.com/questions/1063/… Apr 10 at 19:50
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    "Another assumption would be that every order will be executed on market price. There is no option for bid and ask or any limit order." – That assumption is simply false, and makes the question meaningless. It's like asking, "How do airplanes stay up, if we make the assumption that airplanes don't have wings?" Well, airplanes do have wings, and those wings are how an airplane stays up. Likewise, the stock market does have limit orders, and those limit orders are how the pricing system works. Apr 11 at 1:03
  • There's an explanation at How is stock price determined? and many other related questions on the site you can search through. Apr 11 at 12:41

Another assumption would be that every order will be executed on market price.

The market price is the price at which orders are executed. It looks like I've simply stated the same thing the other way round, but the difference is important.

If you buy a share for $10, then the market price must be $10. If, an hour later, somebody pays $11 for one share, then the market price is now $11.

There is nobody deciding what the market price should be. Instead, there are people offering to sell shares, and people wanting to buy them. If they can agree on a price, then the shares get sold, and that is now the market price, up until somebody else makes another trade.

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