Stock Market

Youtube Stock Market Price – How is the Stock Price Determined? | Stock Market for Beginners (Part 1) | Lumovest

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Youtube Stock Market Price – Most Popular?

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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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39 Comments

  1. Lumovest
    July 31, 2021 at 6:55 pm

    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.

  2. Carrier
    July 31, 2021 at 6:55 pm

    Yeahhhh get that negative time movement in the downward graph at 9:55

  3. Mr. Biswas
    July 31, 2021 at 6:55 pm

    The music is unnecessary

  4. Youtube Watcher
    July 31, 2021 at 6:55 pm

    When they say the price at which 2 people "agree" to buy and sell at makes it sound like you can pick your price. When I buy or sell I don't get to set a price. This is what confuses people.

  5. Kaushik Somaiya
    July 31, 2021 at 6:55 pm

    If the stock price is the price of latest transaction lets assume the current value is 200$ and two friends A&B for the sake of experimenting does the following:
    1. A buys 1 stock at 200$ and tells B that he will bid 400$ to sell
    2. B is ready to buy at 400$ and does it.

    Does that mean momentary the price will go up by 400$ ?

  6. Youka Naava
    July 31, 2021 at 6:55 pm

    No use. I was looking for how the computer works on bids and offers? What is the role of market maker? How the tick comprises? Going behind Buffett pic was quite revealing…. I don't think this is real mccoy info.

  7. Hossein Aboutalebi
    July 31, 2021 at 6:55 pm

    Hi, I just watched your channel and subscribed. Please keep up your good works. Thanks

  8. Timon 12
    July 31, 2021 at 6:55 pm

    Sir iam a student just out of curiosity i know it may sound a dumb question but how do they return invested money to soo many shareholders i don't understand i know how stock markets work you get return in investment but how do they return the investment to millions of shareholders isn't it complicated

  9. gedeo
    July 31, 2021 at 6:55 pm

    I am simple man, I see rocket emoji ๐Ÿš€, I buy ๐Ÿ˜…

  10. Samin Joon
    July 31, 2021 at 6:55 pm

    PLEASE๐Ÿ˜” eliminate background musik! That is so on nerves!!!๐Ÿ™

  11. FreethinkingSecularist
    July 31, 2021 at 6:55 pm

    Please someone answer this, because the video did not. I put a buy order in for 100 shares with a buy stop let's say 5 bucks on a stock that was sitting at 4.98 and the stock price like you stated shows that the last sale moved the needle above 5 bucks to 5.02. Where does the new price come from if there are only two other people who put in a limit sell of 100 shares, one at 4.99 and the other at 5.01? My brokerage says that all my limits and stops are not actual asks or bids but market orders and I only get the cheapest still available does lowest price someone is willing to sell at get the new price spot every time. Will it now move to 4.99? At one moment the next sale moved above all our points of entry and exit. The seller who wants 5.01 put his order in a month ago and the seller 4.99 put his in hour ago. Do I have to pay 5.01 or 4.99 a share please explain? Thanks a bunch. Maybe I thought my way through this as I worked out the question. Lol

  12. ZmDm
    July 31, 2021 at 6:55 pm

    How much does it take to move a stock by 1 point

  13. Sachin Mrig
    July 31, 2021 at 6:55 pm

    Simple and easy to understand the basic concept but very important.

  14. Kishaor Sen
    July 31, 2021 at 6:55 pm

    Its not related to how stock price increase and decrease๐Ÿ‘Ž๐Ÿ‘Ž

  15. N/A
    July 31, 2021 at 6:55 pm

    I'm still confused on whats intrinsic value relative to future value

  16. N/A
    July 31, 2021 at 6:55 pm

    Is the future value also known as the intrinsic value of a stock??

  17. Anita Olsen
    July 31, 2021 at 6:55 pm

    The stock market is big enough for everyone to make a profit, you only need to know when to buy low and sell high, I can help you with a broker that gives 80%win rate trading, Let say you don't have an idea of what stock market is or Investing in Stock Exchange, that's why here in the US, I invest with A broker, they trade for busy traders and beginners, with 10% Referral bonus. That way it Helps me reduce Risk and loss contact me with anitaolsen2k@gmail.com

  18. Pranjal Verma
    July 31, 2021 at 6:55 pm

    Apple today is 130๐Ÿ˜‚๐Ÿ˜‚๐Ÿ˜‚ W.T.F

  19. Victor Berger
    July 31, 2021 at 6:55 pm

    Do you know what I mean? (regarding future cashflow for the LIFETIME of the business). I'm only trying to understand this. I'm trying to make sense of it. Right now it makes no sense at all. You should expand a bit on how you determine the number for the LIFETIME of Apple. If it's a guess, how meaningful and how accurate can your results be. Wouldn't the results have wide variances depending on whether you used 5 or 500 for the LIFETIME. What am I missing?

  20. Victor Berger
    July 31, 2021 at 6:55 pm

    You lost me at 'lifetime of Apple'. Future cashflow for the life of the business could not possibly be a meaningful number in determining a stock price. How could you possibly use that number as an important factor in an equation when it could be 1, 5, 50, or 500. So what number did you use confidently for the lifetime of Apple?

  21. Q. B.
    July 31, 2021 at 6:55 pm

    good explanation

  22. Kenny Jones
    July 31, 2021 at 6:55 pm

    wow, this video by far is the best explaining stock price

  23. Rayjack1the1real1one
    July 31, 2021 at 6:55 pm

    There is something I am missing here. At the beginning of the video you said that the stock price is the price of the last transaction. This means that if I buy 1 Apple share for 200$ and put a sale order at 5000$ then put a buy order at 5000$, I just put the share to a 5k value. I assume that the amount of shares involved in a transaction, related to the total supply, is taken into account. Otherwise anyone can manipulate the market with a couple thousand bucks.

  24. Ved Madhu
    July 31, 2021 at 6:55 pm

    Subscribed

  25. seeker of knowledge
    July 31, 2021 at 6:55 pm

    Cancer music

  26. septiadhi wirawan
    July 31, 2021 at 6:55 pm

    then how is the stock owner get profit other then sell their stock, if i decided to invest it for a long term, can i get benefit from the fcf that so little if i buy only little stock??

  27. aristochat3
    July 31, 2021 at 6:55 pm

    This is the crap you get taught at college. Itโ€™s completely meaningless, since the future is never known. This explanation is equivalent to astrology.

  28. Z.O. 89
    July 31, 2021 at 6:55 pm

    I cant listen with that music… i cant

  29. MOFOGAMINGTTV
    July 31, 2021 at 6:55 pm

    Watching this in 2021. Just to get your algorithm back for your channel

  30. Shivam Gupta
    July 31, 2021 at 6:55 pm

    liked the way you explained it all I such a simple way!

  31. Avadh Savsani
    July 31, 2021 at 6:55 pm

    I can die in peace now! Thanks a lot for such a great and simple explanation frandddd

  32. DJ Curry
    July 31, 2021 at 6:55 pm

    This is a great video, I only have one question about when the video stated "when you own a stock you are now a business owner" I was under the impression that you are a owner of 100% of the stocks or equities you own in the company and not an actual owner of the business due to "separation of ownership and control"?

  33. Khalid Seisi
    July 31, 2021 at 6:55 pm

    One of the best explanation I have seen so far.

  34. Attharva
    July 31, 2021 at 6:55 pm

    Subscribed

  35. MrWalalaa
    July 31, 2021 at 6:55 pm

    after gamestop. i feel like none of this even matters….

  36. O S
    July 31, 2021 at 6:55 pm

    Can we think the instrict value on a few years basis, instead of on one year basis?

  37. Kite Parker
    July 31, 2021 at 6:55 pm

    Hold on, when was aapl trading at $221? Itโ€™s only $127 right now and I donโ€™t see any huge plummets.

  38. Ashish Aryal
    July 31, 2021 at 6:55 pm

    The frking backround music

  39. Idan Cohen
    July 31, 2021 at 6:55 pm

    Can you circle around the point but you never get to it