What is the share price
Hello dear reader! Today we will talk about the basic concepts. Is the stock price a rational value that can be calculated, or is it a more complex concept? And can a mass of diverse factors influence the course? Let's try to deal with this further.
The share price is a consensus, an agreement between the buyer and the seller on the value of the share in a specific period. That is, the exchange rate is a market value, which is constantly changing depending on a lot of factors.
How is it calculated
In the secondary market, the rate is calculated automatically as parity between the buyer and the seller.
Stock Return Calculation
Yield is determined by the dynamics of the price movement for the period plus the existing dividend payments on it.
Market value calculation
The market value is determined at exchange auctions as a result of supply and demand. The price that is shown on the exchange right now is equal to the price of the last deal.
What determines stock prices
Quotes are influenced by many factors, and they may not always be rational. Company reports, news of any kind, rumors, entering the auction of a large seller or buyer, which can simultaneously push quotes in any direction, just the work of algorithms of automatic systems that place orders. All this affects the movement of prices (stock prices, respectively).
How to analyze them
Analysis of quotes movement comes down to two main approaches.
First, fundamental analysis. How can you tell if a stock is worth investing in or not? We need a comprehensive assessment of the state of affairs of the company based on production and market indicators. Profit, assets, credit load, etc. Taking certain values, formulas are determined — fundamental analysis coefficients.
- EPS is the ratio of net profit to the number of shares. How much can you earn on one paper. One of the key parameters for building a strategy;
- P/B is the ratio of share price to inventories. Inventory — the balance of materiel after the repayment of debts. With data <1 — the enterprise is underestimated, from 1 to 2 — fair assessment, >2 — overestimated;
- EV / EBITDA — gives a quick estimate of the revaluation or, conversely, in comparison with competitors. Shows how long it will take for unspent depreciation, interest and taxes to recoup the cost of acquiring the company.
Second, technical analysis. This is the construction of historical charts of the movement of quotations with various forms of representing the price curve (a simple line, Japanese candlesticks, bars) and various technical indicators that allow you to analyze the already completed price movement through the underlying mathematical apparatus.
Where can I see stock prices
You can view stock prices on the following sources:
Select the instrument on the left — stocks, bonds according to the list, level — 1,2,3 and the trading display mode. It's so easy to see the course.
- St. Petersburg Stock Exchange. http://www.spbexchange.ru . The most interesting thing that is traded on the stock exchange is stocks, bonds, ADRs of foreign issuers. Almost the entire composition of the S&P 500 index is presented. In total, more than 770 instruments. Data on the course of trading and totals on the " market data " page . Screenshot of the page where you can see the exchange rate of the Central Bank.
- tradingview. https://www.tradingview.com .
- investing.com. https://www.investing.com .
- Finviz. https://finviz.com .
- market screener. https://www.marketscreener.com _
- ProFinance Services. http://www.profinance.ru/quote_show.php .
- Yahoo Finance. https://finance.yahoo.com _
- marketwatch. https://www.marketwatch.com _ US post-trade session: https://www.marketwatch.com/tools/screener/after-hours .
- Quote Spy. http://quote-spy.com .
- US Premarket. https://money.cnn.com/data/premarket/index.html .
The share price is largely an irrational value, which is simultaneously influenced by a host of mutually exclusive factors. Even powerful supercomputers, which involve the world's leading investment companies, cannot calculate the possible price in the future. How they failed to predict the 2008 crisis or the dot-com collapse in 2000.