A share price is simply the price at which the most recent trade happened. It is not calculated by a formula — it emerges from an ongoing auction between buyers who want to own the share and sellers who want to give it up.
When more people want to buy than sell at the current price, buyers must offer more to win the share, so the price tends to rise. When more want to sell than buy, sellers must accept less, so the price tends to fall. This is supply and demand.
A tug of war
- Buyers compete on price to attract sellers — that pushes prices up.
- Sellers compete on price to attract buyers — that pushes prices down.
- The current price is where the two sides last agreed.
Fictional example: if positive news makes many investors want GreenLeaf Foods Ltd at once, but few owners want to sell, the eager buyers bid higher and the price rises. If owners rush to sell while buyers hold back, the price falls. The company itself did not change — only the balance of buyers and sellers did.
Supply, demand and price pressure
Prices move when the balance between willing buyers and willing sellers shifts. Explore how each side affects that balance.
Net pressure
+38.5%
Upward pressure
Strength of the tilt
38 / 100
How far the marker sits from the centre
No predictions