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How are Daily Stock Prices Set?

By , About.com Guide

Question: How are Daily Stock Prices Set?
Answer: For actively traded stocks, the price is set by supply and demand. If there are more buyers than sellers for a particular stock, the price will rise.

If there are more sellers than buyers, the price will fall.

Economic, political, or natural disaster events may influence whether there will be more buyers or sellers for a particular stock. If the events are significant, they may affect the entire market and move it up or down.

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