LESSON 1.3 · FOUNDATION

Why the price moves

The price is what two people agreed on a second ago — not what the company is worth.

FOUNDATIONS3 MIN READ

The share price you see quoted isn't handed down by some authority — it's the price the last two people agreed on, a buyer and a seller, seconds ago. Shift the balance of supply and demand even slightly, more people wanting in than out or the reverse, and the next trade prints at a different number.

A lot of that daily push comes from market sentiment — how optimistic or nervous the crowd feels right now, which can swing faster than anything about the business itself has actually changed. That's why price and a careful estimate of what a company is worth can drift apart; the difference is what investors call a valuation gap.

Buyers keener than sellersPrice risesThe business itself hasn't changed

The price moved. The factories didn't.

Watch a live price move on the dashboard →

Educational content only. It is not personal financial advice.