Percentage in Point

Posted: 24 Feb 2011 06:05 AM PST

Many of us do know about the stock exchange and share business. Stock exchange provides trading facilities so that companies can trade their stocks and securities there. Any company's financial condition can be known by its share prices in the stock exchange. Companies "rise and fall" can be seen in stock exchange markets easily. Stock prices of different companies are always fluctuating.

How Stock Price is Determined?

The basic thing, which determines the stock price, is demand and supply law. If the demand is more and supply is less then price will go high, on other hand if supply is more but demand is less then price will go down. The most important factor which play major role in any company's stock shares value is company's earnings.

A company's shares can only get high prices when that company is stable, earn high profit. Another thing is the future plans of the company which helps to maintain its share price in the stock market. If the company is having attractive and profitable future plans then its price will remain sustainable in the market.

The buyers for such company shares always increase. In this way demand for shares of that company increases, so according to demand and supply law its price automatically rises.

Stock

Stock always determines the position and ownership of a company; it represents a claim on its proportional share in the company's assets and profits. To determine the ownership of a company total number of shares owned by a person is divided with the total number of outstanding shares. Let's say that a company is having 2000 outstanding stock share and you own 100 from them, this means you own 5% of the company.

It's not like that all companies are having stocks. There is specific type of companies who has the stocks. Those companies are called corporations. Limited companies, limited partnership companies or sole proprietorship don't issue stock in stock exchange market.

Most Expensive Stock

The company Warren Buffet's Berkshire Hathaway's (BRKA) was having the most expensive stock price in United States. Its stock price was $100,000.

Berkshire Hathaway (BRKA) got that so high share price because its shares were never broken forcibly. As this company's single share price is so high that's why its not been made part of a stock market index.

Warren Buffet is chairman and CEO of this company, he himself owns 498,320 shares of this most expensive stock in America. Berkshire Hathaway (BRKA) has so many subsidiary companies and also owns diverse range of businesses.

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