When a Company was expected and then made a profit of X $ then

That X$ increased it's share price. or those the Sellers and Buyers?

Is it because Company A did a profit of X amount, so X is now Added to valuation of the company and since Company is valued by its share it thus increases the value of each share.

Is it just the buyers and sellers that decide the value or price of each share

Thanks in advance.

  • 1
    The buyers and sellers decide the value at the time of transaction.
    – quid
    Commented Mar 22, 2017 at 17:39

1 Answer 1


There are a few reason why share prices increase or decrease, the foremost is expectation of the investors that the company/economy will do well/not well, that is expectation of profit/intrinsic value growth over some time frame (1-4 qtrs.)there is also demand & supply mismatch over (usually) short time. If you really see, the actual 'value' of a company is it's net-worth (cash+asset+stock in trade+brand value+other intangibles+other incomes)/no of shares outstanding, which (in a way) is the book value, then all shares should trade at their book value, the actual number but it does not, the expectation of investors that a share would be purchased by another investor at a higher price because the outlook of the company over a long time is good.

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