{"id":6066,"date":"2019-10-16T07:30:11","date_gmt":"2019-10-16T07:30:11","guid":{"rendered":"https:\/\/labourlawadvisor.in\/blog\/?p=6066"},"modified":"2024-01-24T09:32:19","modified_gmt":"2024-01-24T09:32:19","slug":"how-stock-market-works-why-do-share-prices-rise-fall","status":"publish","type":"post","link":"https:\/\/labourlawadvisor.in\/blog\/how-stock-market-works-why-do-share-prices-rise-fall\/","title":{"rendered":"How Stock Market Works | Why Do Share Prices Rise &#038; Fall?"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6636972c4bda1\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6636972c4bda1\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/labourlawadvisor.in\/blog\/how-stock-market-works-why-do-share-prices-rise-fall\/#Demand_and_Supply\" title=\"Demand and Supply\">Demand and Supply<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/labourlawadvisor.in\/blog\/how-stock-market-works-why-do-share-prices-rise-fall\/#How_the_stock_market_works\" title=\"How the stock market works?\">How the stock market works?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/labourlawadvisor.in\/blog\/how-stock-market-works-why-do-share-prices-rise-fall\/#What_is_BID_in_the_stock_market\" title=\"What is BID in the stock market?\">What is BID in the stock market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/labourlawadvisor.in\/blog\/how-stock-market-works-why-do-share-prices-rise-fall\/#What_is_ASK_in_the_stock_market\" title=\"What is ASK in the stock market?\">What is ASK in the stock market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/labourlawadvisor.in\/blog\/how-stock-market-works-why-do-share-prices-rise-fall\/#What_is_SPREAD_in_the_stock_market\" title=\"What is SPREAD in the stock market?\">What is SPREAD in the stock market?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Demand_and_Supply\"><\/span>Demand and Supply<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The pricing of any product or service is fixed according to its demand and supply. For example, there is an art auction with just one painting for sale and a hundred buyers vying for it. In this case, the buyer with the highest bet gets the painting and that amount is set as the painting&#8217;s price. Alternatively, there are a hundred paintings at an art auction and just 10 buys. If none of the buyers bet a high price for the paintings then the painting goes to the least amount bet. The stock market also works in a similar way.<\/p>\n\n\n\n<p>The more demand and less supply of something, the more the buyers are willing to pay for it. Hence, its price rises. The less demand and more supply of something, the less buyers want to buy it. Hence, the price of it decreases to make a transaction with the buyer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_the_stock_market_works\"><\/span>How the stock market works?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The shares of any company are tradeable between 9:15 am and 3:30 pm every day. So some people might be selling those shares and some might be buying them. At any given point of time during this trading session, if there are more sellers than buyers of a particular share, then that share&#8217;s price in the stock market falls. Alternatively, if at any given point of the trading session, there are more buyers than sellers of a particular share, then that share&#8217;s price in the stock market rises.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"819\" height=\"460\" src=\"https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/10\/bullvsbearmarket.png\" alt=\"stock market\" class=\"wp-image-6070\" srcset=\"https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/10\/bullvsbearmarket.png 819w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/10\/bullvsbearmarket-300x168.png 300w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/10\/bullvsbearmarket-768x431.png 768w\" sizes=\"(max-width: 819px) 100vw, 819px\" \/><\/figure><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_BID_in_the_stock_market\"><\/span>What is BID in the stock market?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In this scenario, Bid is the highest price a buyer is willing to pay for one share at a given point of time.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_ASK_in_the_stock_market\"><\/span>What is ASK in the stock market?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>On the other hand, Ask is the lowest price that a seller is willing to sell his one share for, at a given point of time.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"576\" height=\"1024\" src=\"https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/10\/Vertical-Thumbnail-4-576x1024.jpg\" alt=\"\" class=\"wp-image-11560\" srcset=\"https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/10\/Vertical-Thumbnail-4-576x1024.jpg 576w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/10\/Vertical-Thumbnail-4-169x300.jpg 169w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/10\/Vertical-Thumbnail-4-768x1365.jpg 768w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/10\/Vertical-Thumbnail-4-864x1536.jpg 864w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/10\/Vertical-Thumbnail-4-150x267.jpg 150w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/10\/Vertical-Thumbnail-4-300x533.jpg 300w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/10\/Vertical-Thumbnail-4-696x1237.jpg 696w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/10\/Vertical-Thumbnail-4-1068x1899.jpg 1068w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/10\/Vertical-Thumbnail-4-236x420.jpg 236w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/10\/Vertical-Thumbnail-4.jpg 1080w\" sizes=\"(max-width: 576px) 100vw, 576px\" \/><\/figure><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_SPREAD_in_the_stock_market\"><\/span>What is SPREAD in the stock market?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The difference between Bid and Ask is known as the Spread. Generally the Bid and Ask prices stay close to each other. Having a wider Spread is not considered good for the company&#8217;s shares in the stock market.<\/p>\n\n\n\n<p>One can easily view how many people are buying or selling a particular share at what time in the stock market. This is possible by just searching for the shares on Google or looking it up on a stock market app such as Upstox.<\/p>\n\n\n\n<p>For more information on how share prices rise and fall in the stock market, check out the video below.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"youtube-embed\" data-video_id=\"IAz5jQ2MipE\"><iframe loading=\"lazy\" title=\"Why Share Prices move UP and DOWN | How Stock Market works?\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/IAz5jQ2MipE?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p>Also read, <a href=\"https:\/\/labourlawadvisor.in\/blog\/how-to-check-irctc-ipo-shares-allotment\/\">How To Check IRCTC IPO Shares Allotment?<\/a><\/p>\n\n\n\n<p>Join the LLA telegram group for frequent updates and documents.             Download the telegram group and search \u2018Labour Law Advisor\u2019 or  follow            the link \u2013 <a rel=\"noreferrer noopener\" href=\"http:\/\/t.me\/JoinLLA\" target=\"_blank\">t.me\/JoinLLA<br><\/a>It\u2019s FREE!  <br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Demand and Supply The pricing of any product or service is fixed according to its demand and supply. For example, there is an art auction with just one painting for sale and a hundred buyers vying for it. In this case, the buyer with the highest bet gets the painting and that amount is set [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":11559,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2243,2244],"tags":[359,474,473,350],"_links":{"self":[{"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/posts\/6066"}],"collection":[{"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/comments?post=6066"}],"version-history":[{"count":2,"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/posts\/6066\/revisions"}],"predecessor-version":[{"id":15741,"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/posts\/6066\/revisions\/15741"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/media\/11559"}],"wp:attachment":[{"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/media?parent=6066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/categories?post=6066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/tags?post=6066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}