How exactly market price is calculated?

I have series of questions related this topic kindly help me to understand better.
company sold its shares to public and raised money. after that how its market price depends companies performance ??
( i want to understand the mathematical relation not trend wise plz . i know news , economy etc etc changes market price but i want to know how its connected not like share holders selling or belling at different value )
like any mathematical equation to calculate with the know value of profit etc.,?

You want to know Intrinsic Value of the stock?

You can read Fundamental Analysis module on Varsity, to know how you can calculate Intrinsic Value of a stock.

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Hi Animesh!

The market price is purely a mechanism of demand and supply. There is no direct linkage in terms of mathematical equation. There are many investors who are analyzing the company and its performance. An increased profit could result into a positive perception about the company amongst these investors. If a majority of people then want to buy or began to buy this company, then the price due to high demand will rise.
Hope it is clear. :slight_smile:

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