zlacker

>>qqqqqu+(OP)
If I buy a stock, does the price at which I agreed to buy it become the new share price on the stock exchange?

Every article on "Where do stock prices come from?" seems to just talk at a high level about supply and demand.

But where does the price come from at a nitty-gritty level? Is it an average of all existing offers or something?

Do different exchanges and stock-ticker websites have different formula for calculating share price?

If a very low-volume stock is listed at $4, and then I offer to buy a share for $100, does the NYSE suddenly start listing its price at $100?

>>robert+XO
It’s not dissimilar to a commodity like Gold with some extra parameters like number of stocks. Comes down to an open market and buy/sell demand. There are other parts to your example such as depth of order book (orders on the buy sell side) which provide liquidity. So if a low volume stock is at $4 and you offer to buy at $100 you would probably end up with 100/4=25 shares. If was more illiquid you could possibly move the price up depending on order quantity.