How is the Stock Price Determined? | Stock Market for Beginners (Part 1) | Lumovest
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- Опубликовано: 20 сен 2018
- Learn finance, accounting & investing: www.lumovest.com
How is the stock price determined? In this video, we'll explain how the stock price is calculated in simple terms and take you through the logic behind how everything works. This is perfect for stock market beginners who want to learn investing. People will tell you that the stock price is determined by market supply and demand, but that's really vague. For example, what's guiding how much people supply and demand for a particular stock? The truth is, it really comes down to the intrinsic value.
Let's establish what the stock price is. The headline stock price we see quoted in the stock market is the price at which the latest stock transaction occurred. It's not the price at which you can buy the stock but the price at which the last trade happened.
Buyers of a stock determine how much they're willing to pay for a stock by calculating the intrinsic value of the stock. Likewise, sellers will do a similar exercise to determine the price at which they would sell. And when both the buyer and seller agree to a price, they make a trade and the stock price changes to reflect this latest price.
Therefore, intrinsic value is the guiding force of the stock price.
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Hey guys! Do you now understand how the stock price is determined? I hope so. If not, tell me where you're stuck and I'll try to clarify things for you.
Have the shares in your company went up after this informative video? Lol
Here's a great question I'd love to see some thoughts on, "Priced in." Ok, how? Why can't I find information explaining how news or uncertainty has been priced in? Do a buyer and a seller agree on the "priced in?" A price is never set by just one party, it takes two, does "priced in" mean "ignored." It was priced in they say, ok, how, what happened, where can i see this?
If a company doubles its worth buy developing and selling a new product while all of the shareholders stop selling them, is it possible for the price of the share to increase?
Unlimited QE by the FED will change everything in anyway.
@Chris yes, already considered in the past, or "ignored." I wish people would quit saying "priced in," price is numbers and numbers are a system of measurement. It makes it sound too fancy lol
With a keen interest in investing, I often ponder the strategies that propel top investors to millionaire status through their investments. Having recently sold my home and acquired $545K in equity, I'm uncertain about my next move. Should I invest in stocks now, or should I wait for a better opportunity?
The present market conditions could offer chances to enhance earnings quickly, yet to implement such a plan, expertise is essential.
Undeniably factual. Despite my absence of prior investing acumen, I ventured into investments pre-pandemic and managed to amass a profit of about $450k within that year. Essentially, I solely relied on professional counsel.
Lately, I've been researching advisors, but the market updates I've encountered haven't been very positive. Who's your guide?
The licensed advisor I've chosen is Laurelyn Gross Pohlmeier. It's wise to research her name to obtain the pertinent information required for scheduling a meeting.
I searched for her complete name on the internet and located her page. I then sent an email and scheduled a meeting to converse with her; now, I'm awaiting her response.
The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
In particular, amid inflation, investors should exercise caution when it comes to their exposure and new purchases. It is only feasible to get such high yields during a recession with the guidance of a qualified specialist or reliable counsel.
True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diverssify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of 550k...that's like 7times more than I average on my own.
This aligns perfectly with my desire to organize my finances prior to retirement. Could you provide me with access to your advisor?
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder
The truth is that this is really not as difficult as many people presume it to be. It requires a certain level of diligence, no doubt, which is something ordinary investors lack, and so a financial advisor often comes in very handy. My friend just pulled in more than $84k last month alone from his investment with his advisor. That is how people are able to make such huge profits in the market
nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?
ANGELA LYNN SCHILLING' is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 17k in last month 2024 Investing with Juliana Heidi
Wow that's huge, how do you make that
much monthly?
Honestly? I'm so excited. Juliana Heidi strategy has normalized winning trades for me also. and it's a huge milestone for me looking back to how it all started
The first time we had tried, we invested $5,000 and after a week we received $23,400. That really helped us a lot to pay our bills.
Most people are retiring this year and has nothing to show for. But I assure you it's never late to get your financial life together again.. All thanks to JuLiana for I and my family...
Wow wow please is there any way to reach her services, I work 3 jobs and trying to pay off my loan for a while now, please help me..
Like Warren Buffet said, dividends are only good if the business you’re investing into can’t make good use of that capital. I'm still at a crossroads deciding if to redistribute my $400k stock portfolio. what’s the best way to take advantage of the market?
If you're not who understands strategies to invest in the market, seek a Financial advisor to guide you.
Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
I've been looking to get one, but have been kind of relaxed about it. Could you recommend your advis0r? I'll be happy to use some help.
*Jennifer Leigh Hickman* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
What is the best way to profit from the current market, meanwhile I'm still undecided about investing $400k in my stock portfolio to get some dvidends and minimize risk
Remember that investing in the stock market carries risks, and it’s important to do your own research and consult with a financial advisor before making any investment decisions.
With the help of an investment advisor, I was able to diversify my $550K portfolio across multiple markets, and in just a few months, I was able to earn over $950K in net profit from high dividend yielding stocks, ETFs, and bonds
Pls who is this coach that guides you? I’m in dire need of one
My financial advisor is Nicole Desiree Simon . I found her on a CNBC interview where she was featured and I reached out to her afterwards. She has long helped me with my portfolio and is exactly what you need right now.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Stocks extended their year-to-date rally following the CPI report, with the S&P 500 last up 0.8% in afternoon trading. but I don't know if stocks will quickly rebound, continue to pull back or move sideways for a few weeks, or if conditions will rapidly deteriorate.I am under pressure to grow my reserve of $250k.
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
This is why I've entrusted a fiduciary with my investmnt decisions. Many underestimate advisors until emotions lead to losses. My advisor crafted a tailored strategy aligning with my long-term goals, guiding entry and exit points for the equities I focus on. This has grown my portfolio to over $850k. My personal best so far
who is your advisor please, if you don't mind me asking?
Her name is “Carol Vivian Constable” can't divulge much. Most likely, the internet should have her basic info, you can research if you like
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Really clear explanation about how stock price changes. i have seen around 50+ videos on the same topic, but this is worth watching it.
Thanks for the kind words!
It has a lot to do with people who don't really fully understand what they are talking about lmao
Exactly
Impressive.
This video is perfect for people who don't understand the stock market at all cuz this is literally all that matters with the stock market determine if it's a good price and if so buy. Not complicated once you understand what causes the price changes.
The market is more volatile than ever. I've been holding cash since '20 pandemic crash, but just went "all in" bought up $250k worth of ETF's & individual stocks at discount, and hoping to average down on ailing companies, , open to any recommendations that come in handy
this is quite huge ! much more info needed please, what did you invest in?
excellent share, just inputted her full name on my computer and searched online, top-notch credentials. Ive seen commentaries about advisers, but not one looks this phenomenal
This is the only video which actually explained technically that why does the stock price changes & in which direction. Thank you very much Sir!
Biggest lesson i learnt in 2023 in the stock market is that nobody knows what is going to happen next, so practice some humility and low a strategy with a long term edge.
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
Uncertainty... it took me 5 years to stop trying to predict what’s about to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
Could you kindly elaborate on the advisor's background and qualifications?
The advisor that guides me is Sonya lee Mitchell, most likely the internet is where to find her basic info, just search her name, She's established.
Best Videos on Stock Market i ever watched...thanks from India, lotsa love !!
Thanks for the support!!
I'm trying to get my girlfriend started with investing and she gets fed up when I start babbling about philosophy, understanding P/E ratio, understanding revenue, earnings, eps, ROIC, NOPLAT, dividends and so on... This video was very well put together easily and straightforward explained, with good animations!
And very helpful for her!
@@charlesludwig9321 he clearly answered yes :P
Charles Ludwig she's 16
Change your girlfriend
I appreciate your conceptual clarity..!
Hey Mayur, thanks for watching!
Recommendation: Add subtitles for beginners to better understand along the way :)
Ya
Best video on stock market ever.
Before this whole explanation of "future value" and "intrinsic value", I thought stock market was just a gamble but now I understand how the price of a share is really determined.
Best video I have seen in recent times , great work !!
Thx man for explain how stock market determine and also fluctuates !!
Thankyou for such a great knowledgeable talk about stock market.
Support from generous fans like yourself make this possible!
Clearest video of all times ! Many Thx
I learned a lot. Thanks for simplifying everything.
i definitely recommend this video to my friends🤗. Awesome.
All my life I’ve been interested in the stock market but not understood or had stupid explanations, this is the ONLY video I’ve ever seen that has been useful. Well fucking done mate b
Easily the best explanation I have seen.
One of the best videos I've watched on stocks
Thanks for this simplified explanation.
This was done beautifully. I made the exact same Google search, thankfully i found this video!
finally what im searching for
4:24
There it is! As easy as it can be explained. Thanks
Really clear explanation on stock prices! I am an accounting student and I am currently taking Intermediate Accounting 2 and I just couldn't figure out how stock prices would be accounted for and how much cash is going to be received! Thank you so much!
No other channel explained intrinsic value the way you did. Really worth watching it.
Other videos only talk about demand and supply but never bother to explain how demand and supply increase or decrease. This video has gone an extra mile in explaining the concept of free cash flow and intrensic value which basically is the driving force behind a stock value.
So from what just happened with GME, was the increase in share price due to the surge of buyers and the shorted stocks being settled at the higher price? And then the marketplace restricted public buys on platforms internationally. During this time hedge-funds continued selling between each over really fast on the exchange, stepping down the price gradually as it averaged against incoming public purchases? I’m a noob just interested what caused that particular price to change.
To be honest, I was shocked that this channel only has 41.6k subscribers , with these contents, I thought this channel already have 100k+ subscribers. All the best! Im sharing them!
Thank you!
Thank you so much for this video.
Absolutely loved this video
This gotta be the new youtube financial GOAT. Very clear explanation sir 👍🏻
I THANK YOU SO MUCH!!, THAT'S WHAT I'VE BEEN SEARCHING FOR A LONG TIME
Very informative guys.!
Your presentation and the marketing strategy at the end tells how good you are at commerce and economics. I am glad to see good content from experts like you
Haha and your supportive words tell how kind you are. Thank you :)
Many traders don't care about intrinsic value and other company metrics. They just buy the dip and sell a few dollars higher. Simple and effective.
David James only when you play short with no long plays
@NerdyJock - "play short" - is basically the definition of trader (vs. investor).
@Chris - I said buy the dip, not buy the plummet. I am talking about a good stock that dips during the day and when I do that, it almost always comes back up. Sometimes I do this multiple times in the same day using the same stock.
Awesome video.....I would love to hear of some examples where your 'investments' haven't paid off or have fallen through and how you managed it and what you learnt from it. I think that would be really helpful!
Seriously, you guys are the best of the best
The best advice I can give is to watch the news. There are psychological influences in the market. Bad news is bad news and good news is good news...typically.
Been on tons of workshop, i didn't know i could gotten all off cash flow explanation for free in lumovest :( please keep making this video
liked the way you explained it all I such a simple way!
This is absolutely phenomenal! I’m pretty good with numbers, but your explanation and examples made it super easy to follow. Thank you so much, I have subscribed.
Really clear video! Nice job :)
Well explained bro! Keep it up!
Thanks for the kind words!
Extremely helpful, new subscriber for the long haul 🙂
I'm glad Steph :)
This is so intuitively presented. I would highly recommend this video to anyone new to investments.
Wow very clear and precise
Unlimited QE by the FED will change everything in anyway.
Stop with the music.. it's difficult to concentrate
Yeah that's supposed to be correct.. But for some reason the music is making me more relaxed 😅
I don't think it's the music... it's you
Kevin P Lol exactly
It didnt bother me before i rode this lol i didnt even realize there was music now it does tho
wow, this video by far is the best explaining stock price
Thanks Kenny!
Simple and easy to understand the basic concept but very important.
This video finally put everything together for me. I wanted to know how this works so I could simulate it myself, but I could not find a reliable answer anywhere until I found this video. Thank you. :D.
8:34 It’s the S curve that should move to the right, reflecting more sellers. That in turn will drive the prices down. All in all, great video.
Supply is not increasing, the demand is decreasing because of fear (selling)
S H If you had shares in company X and you believed that the stock price is now overvalued, you would sell, right? If everyone did the same, the S curve would shift to the Right, Increasing supply
Yes that makes sense to shift the supple curve right
Because everyone is rushing to dump their shares, thus increasing supply
But even though the demand has increased due to more people selling (as more people would also be buying), the corresponding quantity demanded to a certain price would also have decreased due to larger supply, hence it would also make sense to move the demand curve to the left right?
Made-easy.... looking for more.
More will be coming! And there are also hundreds of videos on our Lumovest website :)
I appreciate your effort....
Thanks for the video....
Love from Nepal....
Thank you Pratik!
Welcome.....
May you gain enough views and subscribers...... Keep moving.... Hard work pays.....
Watching this in 2021. Just to get your algorithm back for your channel
Haha super thankful!
Amazing explanation 👏👏👏👏👏👏
New subscriber here! This really helped me on my studies. Thank you so much ❤️ looking forward to your other videos..
You're welcome :)
Have you been trading on stock?
Greatest video. Thank you
Thanks Ana :)
well done, exactly what i was looking for
Hey would you please tell ,how much should I assume a growth rate of explicit for cast period, aka continuing value ,thanks
amazing , easy to understand
Hello , helping video
Thanks Sir
Very informative. Thanks a lot!
Hi, I just watched your channel and subscribed. Please keep up your good works. Thanks
subscribed . GOOD QUALITY CONTENT
Great vid thanks
Clear Explanation❤️. I think this is the undervalued You tube channel on stock market. I wish this channel gets more subscribers in the future.
Loved it !
Thanks!
What a logical explanation😎,superb
Thanks man!
thank you
I think I understand. At 8:42, I can translate that directly to when im trying to buy stock from a brokerage when there's different types of orders (market, limit). My decision on a specific stock then gets calculated along with many other people's decision for that same stock and you end up certain transactions going through and certain ones not happening.
Bro your videos are incredible. I want to start trading and your videos are very helpful up to a point . You keep it simple , graphics design awesome, and the voice . Keep going
Thanks so much!!
oh this makes me much clear about the stocks
thnk u
This is a great video! Great work.
Thanks!
You should upload more videos,you are great
Thank you much
I nvr comment on youtube videos.. Ur video was engaging and crisp.. Kp up the good wrk
very conceptual video❤️❤️❤️
Fantastic video! Super clear explanation of everything that most people just skip over. Really appreciate the detail!
excellent video. Really very useful for beginners.
Excellent simplified explanation about how the prices are determined, I consider myself pretty ignorant with regards to the intrinsic value factor, super important now that I saw this video, can you create a video just focused on demystifying intrinsic value with a couple of deeper examples, something like using yahoo finance and their profile details on some stock e.g. APPL? Thank you for all your great information and hard work.
helps so much
Outstanding bro👍👍👍👍
Great information... superb video... 👌👌
I have a question : How often do we calculate and update the intrinsic value of the stock in a year ????
Finally!
Thanks a lot.
Informative video! Where is part 2?
This is great. Thanks!
Great and interesting
Thanks.
U got a new subscriber. Sharing 👍
So much better than the number 1 video for this topic. That's a thumbs up and subscribe from me.
So basically what i understand is when we try to buy any stock, we are actually bidding for it. And when it matches the seller price. And the stock price will indicate this traded price.
Brilliant
I can die in peace now! Thanks a lot for such a great and simple explanation frandddd