How a stock price is determined
A stock price is determined by what was last paid for it. During market hours (usually weekdays from 9:30AM-4:00PM eastern), a heavily traded issue will see its price change several times per second. A stock's price is, for many purposes, considered unchanged outside of market hours.
Thinly traded stocks are handled by specialists who make a market in the stock. Generally, they maintain bid and ask prices based on the most recent sale but factoring in market developments since the last completed sale.
Related Fool Articles
Recent Mentions on Fool.com
- Billionaires Are Ditching These Stocks
- Lyft vs. Uber: Just How Dominant Is Uber in the Ridesharing Business?
- AOL's Fall From Grace Is a Warning for Today's Tech Giants
- Stephen Ross? $350 Million Renovation Project Is a Great Example of Socially Responsible Investing
- Why Lamborghini Built the Outrageous Veneno Roadster
- Risk Averse? Kiss Retirement Goodbye