<p>Its really quite simple, the stock price you're seeing is actually the last trade that took place, the different bids are tails of the suppliers and demanders - their maximal or minimal bids</p>

<p>In everyday trade the simultaneous bids arr very close, and the deals are happening all the time, more or less bids in a certain direction can point out market expectations, but in a range of minutes
This applies to high volume markets, of course</p>

CC BY-SA 4.0
2018-09-28T14:05:37.410Z
Thx. So to be sure: If say, a lot of people want to sell, but *nobody* buys, the stock prices *would not fall*, would they? (If there is no trade made.)
BmyGuest
CC BY-SA 4.0
2018-09-28T14:07:46.163Z
If there is no trade made, then nothing happens... once one side "blinks" and a trade is made, then you can say something happens
Guy Louzon
CC BY-SA 4.0
2018-09-28T14:08:41.600Z
Ok. Thx for clarification. And vice-versa: If some stock "lost value" it means that at least *one trader* actually sold for that price (and one buyer bought)?
BmyGuest
CC BY-SA 4.0
2018-09-28T14:17:09.383Z
Sure. and yes, exactly so
Guy Louzon
CC BY-SA 4.0
2018-09-29T06:59:28.853Z
The 'last price' is not the only approach to find the price. Typically when you hold an instrument and want to 'mark to market', ie use the market price, you Wil use the bid price, because that's the price you would be able to sell it at. When you want to buy an investment, or you are short, yous should use the bid price. Some systems also allow you to use the midpoint between the bid and the ask.
Hector
CC BY-SA 4.0
2018-09-28T10:03:46.803Z
2018-09-28T10:03:46.803Z
Guy Louzon
<p>'Everybody' knows that prices are generally governed by offer &amp; demand, but I am wondering on the details of the stock exchange here.</p>

<p>How are stock prices (the ones which are nicely listed every day in charts) are actually computed to a specific number based on various simultaneouse bids? </p>

<p>Do they change, if no transaction is actually taking place (but there are bids)?
And how are concurring bids dealt with?</p>

<stock-market><price>
How are final stock prices arrived at?
BmyGuest
# How are final stock prices arrived at?

(Asked by: username_0 on 2018-09-28)

'Everybody' knows that prices are generally governed by offer & demand, but I am wondering on the details of the stock exchange here.

How are stock prices (the ones which are nicely listed every day in charts) are actually computed to a specific number based on various simultaneouse bids?

Do they change, if no transaction is actually taking place (but there are bids)?
And how are concurring bids dealt with?

**Tags:** stock-market, price


---

## 1 answers

### Answer by username_1 on 2018-09-28. Score: 1 | Accepted answer

Its really quite simple, the stock price you're seeing is actually the last trade that took place, the different bids are tails of the suppliers and demanders - their maximal or minimal bids

In everyday trade the simultaneous bids arr very close, and the deals are happening all the time, more or less bids in a certain direction can point out market expectations, but in a range of minutes
This applies to high volume markets, of course

> **Comments:**
> **username_0**: Thx. So to be sure: If say, a lot of people want to sell, but *nobody* buys, the stock prices *would not fall*, would they? (If there is no trade made.)  
> **username_1**: If there is no trade made, then nothing happens... once one side "blinks" and a trade is made, then you can say something happens  
> **username_0**: Ok. Thx for clarification. And vice-versa: If some stock "lost value" it means that at least *one trader* actually sold for that price (and one buyer bought)?  
> **username_1**: Sure. and yes, exactly so  
> **username_2**: The 'last price' is not the only approach to find the price. Typically when you hold an instrument and want to 'mark to market', ie use the market price, you Wil use the bid price, because that's the price you would be able to sell it at. When you want to buy an investment, or you are short, yous should use the bid price. Some systems also allow you to use the midpoint between the bid and the ask.  

---

