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
- Why Apple, D.R. Horton, and VASCO Data Security International Jumped Today
- Are Apple Shares Still a Buy After Its Earnings Blowout?
- Why Xilinx Inc., Biogen Idec Inc., and Qualcomm Incorporated Are Today?s 3 Worst Stocks
- A Plan to Make Chromebooks More Secure Could Change the Industry
- Big Changes for the 2015 Toyota Camry
- Polaris Industries Sales Soar, but This Stock Is Still No Harley-Davidson