...Beauty, cleaning, DIY tips and more - free to join!
   Login   Contact us   Site map   Puzzle Club   Ask a question    Newsletter

How A Share Price Is Calculated

Money : Stocks And Shares

A share price for a company seems like a mysterious value. It can be large or small, stay at a steady rate or fluctuate rapidly. So what decides the share price?

Well, it is set by the market capitalisation, the value of the company, divided by the number of shares in issue for the company - this makes sense.

Therefore the more shares in issue, the lower the share price would be for company x that is of the same market capitalisation as company y.

The P/E ratio itself is the measure of the share price divided by earnings per share.

By: Job Expert

Share on Facebook: On Twitter: TwitterTweet this!

  Reply to How A Share Price Is Calculated

  Receive Our Newsletter

Questions about investing:

Ask question

More Articles:
How to live on a budget
Why you should add a photo to eBay listings
Mortgage terms explained: APR