Where do these numbers come from?

Isn't trying to measure supply and demand a bit of an abstract concept? It's not like there's a supplyoscope and demandometer. Is there some jew somewhere that just makes this shit up, kinda like the election polls?

Moshe's spreadsheet.

It's the value of the stocks based off of the amount of stocks owned by other stock holders as well as the worth of the company and its product (determined by the apparent supply and demand)

tons of factors

>seasonal sales
>operating income relative to narket
>growth prospects
>macro factors
>earnings speculation


and for ultra micro
>ai flipping and algo trading

dont get into stocks unless you wanna really git gud. you want a 30%+ annual return safely from deno accounts. if you cant do that dont bother. also, always diversify. if you like yolos, then do divirsufied yolos in different industries.

the line is just the price that has been paid for the stock over time.

simplified:
If nobody will pay the price for the stock it will go down

I nobody will sell for the price of the stock it will go up.

The worth of the company is pretty concrete. You can put a value on that in terms of dollars and assets.

>"apparent" supply and demand

seems pretty speculative

Its determined literally what people are willing to pay for it, gambling on growth prospects.

a Stock being 30 or 500 dollars doesnt matter at all. A company with a 2 dollar stocj can be bigger than one with a 1k stock. what actually matters in a stock is its percentage fluction.

In the most simple form:If a company is worth $1b and there are a total of 1m shares in existence, those shares are worth about $1000 each.

However, depending on the past and expected future of the company they may be over or under valued. In the end, the value depends on what people are will to pay for them. Stocks are a share of the company, some companies offer dividends per share. So you get a bit of the profits they make in that fiscal quarter.

TLDR, shareholders are all owners of the company and it's assets and profits. You can trade your shares to someone else who want a bigger piece of the pie.

t. Made 16% on AMD today.

Yea a company has a "concrete" value, but that value shifts around depending on the state of the business. Are the expanding or downsizing? Increasing or decreasing output? Adding new products to their line? Branching into new technology? So on and so forth.

It's like when say an Energy company (electricity/battery?) announces that they're opening a nuclear plant or expanding into wind farms or something, their stock value might skyrocket because people will start buying the stock in anticipation of the companies future success (based on their announcement of expansion) which will eventually translate into actual "worth" when their announcement comes to fruition.

I guess this is also why insider trading and whatnot is also illegal, because if you're someone with enough money (like George Soros for example) you could stake billions of dollars on an insider tip and potentially crash markets.

Like lets say you were best buds with Donald Trump, and he tells you in confidence, a week in advance, that he's going to declare war against Mexico. You could short the Mexican Peso for like $1,000,000 and then when Trump makes the announcement you'd make a fortune because their Peso would instantly crash.

These are pretty much it -- glorified gambling where people speculate on the FUTURE worth of a company, as measured by their stock. Think other people will think that ABCD is worth more tomorrow? Then buy their shares today. Think other people will think it's worth less? Then sell their shares that you don't have today to buy them back from someone else tomorrow (yep).

The price changes based on demand. If a bunch of people ( or institutions, really) are buying a stock the sellers raise the price. If people keep buying the price keeps climbing. Of course this usually doesn't go on for too long because the higher price eventually inhibits buying.

The oppisite happens when their are more sellers than buyers.

These ups and downs play out in fractions of cents very quickly and are limited by natural "support" that comes from low prices incentivising buyers ( which slows and usually stops negative price movement) and high prices incentivising sellers (which slows and usually stops positive price movement)

The dow, sp, and the like are just big weighted averages of individual stocks.

The market movement is literally a measurement of supply and demand.

>worth of a companies assets is concrete
no, stock price includes speculation.

And what makes ABCD's stock "worth" $100? That's just the price that other stockholders are willing to sell and buy at. There's no special magic, it's just the price that the market (share sellers/buyers) is currently trading at.

Per Mr Market by Ben Graham it's what the market is offering the sale price of the shares that day.

Just FYI people like myself and DIY investors have been dumping tons of cash into common stocks since trump was elected. For example, Warren Buffett purchased 5 billion in stocks the last year of Obama, and dumped 12 billion into the market since Trump was elected. This is all because of deregulation and fiscal stimulus. The negatives of Trump is fucking with a large portion of our labor force with stricter immigration. It's not some Jewish conspiracy. Trump has made the world a more dangerous place, but has also promised to be very pro business.

children on Sup Forums try to understand the world.

Assets = Liabilities + Equities.

Accounting 101. When it comes to valuing a company, there are a ton of factors that go into a price of a stock. Essentially it is what investors are willing to pay. To get a true value of a stock analysts will use a discounted cash flow formula to get a net present value. This isn't exactly accurate as there are a few uncertainties that go into this, mainly risk and discount rate that you attribute to a stock.

To elaborate further, you can go through the balance sheet, income statement, and statements of cash flows to try to determine how much a stock is worth. The overall value you are trying to get is the "Equity" value in the formula above. So if you subtract liabilities from Assets, you can take the number of outstanding shares of a company and divide that by the remaining assets to get a relative value. This is essentially the book value, and doesn't take into account future products or innovations that are in the pipeline of a company, or future expected cash flows. If Apple is planning to release a hyperloop that investors are extremely excited about, this will be priced into a stock value if it is near certainty. Even if it isn't certain to work, investors will hedge bets and that will impact the book value + the expected future cash flows of a company. Hopefully this helps some finance noobs.

Everything said so far is on the money from a fundamental perspective. However, supply and demand are vague ways of explaining macro movements in the market. The same as saying "invisible hand;" you understand the broad strokes but not the details. Understanding details about the small day-to-day actions and market reactions is what makes Wall Street rich and the average investor loose (if he didn't invest in a broad maket index).

To elaborate even further, the three statements above are called the "holy trinity" of accounting. These statements are required to be reported for a public company and are available on sec.gov. You search for 8k and 8Q statements for annual and yearly statements.

If you're really interested in learning how to value a company, there are a number of good youtube videos, I'd recommend watching Martin Shkreli's finance lesson's as he does a really good job in summing up how to value a company in about 6 hours or so. It takes time to learn as does anything, but it really is not that hard.

If you want to be lazy, you can look at P/E value or book value but those are generally horrible indicators as they don't take into account future cash flows of a company, or future product expectations. A P/E can look good, until the price of oil gets cut in half, or some other future event that you have to predict as an analyst.

In an attempt to guide OP to some form of a useful answer for further study, look at daily option spreads (calls and puts) for a stock. These give you a much more detailed look at how the "real" money makers and market movers feel about a stock as bets for future movement are made ahead of time with a penalty in the form of option value time decay (Rho). In other words, you can get a sense of the future distribution of prices that buyers and sellers have established in addition to the implied risk an asset holds, as agreed upon by traders.

OP is a moron, bury this shit SEGA

In reality, there is no one "price" people agree too. Every transaction has a different price point. The values you see online are aggregated averages from big market makers. This is why it's hard to understand the supply and demand argument. Everything in finance is a random variable. Only an academic would think otherwise. Look at options, trust me, I do this stuff for a living

The stock market and share prices really aren't based off of supply and demand in the way that you're thinking of it

People who invest in the stock markets usually do an independent valuation of a company, divide it by the number of shares on the market, and there you have your "true" share price. If the price on the exchange is lower than your true price, you buy, if it's higher then you sell.

The reason it goes all over the place is that a) nobody knows how to do a proper fuckin valuation and you've got spreadsheet interns giving valuations millions of dollars apart and b) people try to ride the trends without actually knowing what the hell is going on and end up inflating/crashing stocks