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
- Can Hovnanian Earnings Outpace Beazer Homes and Standard Pacific?
- Can Quiksilver Earnings Surf Past Zumiez and Pacific Sunwear?
- What Is This Dividend Stock Going to Do Once It Has the Crown?
- Is Netflix Overdue For Another Correction?
- Solar's 2014 Boom Is Coming
- Will the Natural Gas Market Continue to Recover?