Gyasuddin (Accounts Manager) (37 Points)
14 August 2010Dear All,
Kindly tell me that how the rate of share is increasing moments by moments, how they monitoring the data ?
Which is the default method used to valuate the value of share in stock market or Secondary Market or Trading Market ?
How is the Sens*x and Nifty increased or decreased every span of second ? is this counted with number of transaction during the day or what else ?
Regards,
Gyasuddin
CA Himanshu Bansal
(Risk Manager)
(2345 Points)
Replied 14 August 2010
Stock prices fluctuate following the principle as simple as Law of Demand..
When demand for a scrip is more,on the exachnge's terminal more bids will be there at prices near to CMP.. and sellers will be willing to sell at a higher price.Hence, the price is bound to go up..
When the demand for a scrip is less,on the exchange's terminal less bids will be there at prices near to CMP.. and buyers will be willing buy only at lower prices.Hence, the price is bound to fall..
Now the reasons behind such nature of demand and Supply may be numerous..
CA Himanshu Bansal
(Risk Manager)
(2345 Points)
Replied 14 August 2010
Sens*x and Nifty are benchmark Indices of BSE and NSE respectively.
The movement in their constituent stocks changes their value up and down constantly..
CAclubindia
