Demand and supply price fluctuations

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Hi

I have successfully drafted price, demand and supply for an intra day transaction by minute. Now i want to find the correlation between demand and supply and price changes. 

Does antone has the expertise to explain how stock prices are set in the market. Are these stock prices the same as a company share price? The intrinsic value or two step or three step model or h model "Po" is equal to the intraday stock price? 

I know intraday stocks are fvpl inveatments traded in secondary markets while shares of a company are fvoci traded in primary markets. Im just trying to establish a correlation for my research. So help me asap. 

Txs

Replies (3)

The stock price you see in the market represents the current trading price of a company's shares. It reflects the consensus among market participants regarding the value of the company and its future prospects. The stock price is influenced by various factors, including the company's financial performance, industry conditions, economic outlook, investor sentiment, and news or events that may impact the company or the overall market.

 

The intrinsic value of a stock, as calculated through valuation models like the two-step, three-step, or H model, represents an estimate of the stock's true worth or fair value. It is based on fundamental analysis that considers factors such as the company's earnings, cash flows, growth prospects, and risk profile. The intrinsic value may differ from the market price, and investors often look for discrepancies between the intrinsic value and the market price to identify potential investment opportunities.

Establishing a correlation between demand, supply, and price changes in intraday trading can be complex, as it involves analyzing short-term market dynamics, market microstructure, and the behavior of market participants. Correlation analysis can help identify relationships between variables, but it's important to note that correlation does not imply causation. Additionally, intraday stock prices can be influenced by a wide range of factors, including news events, market sentiment, and algorithmic trading, among others.

Per say a company find its share price by

Po=D1/r-g

Is this Po not related to market index? 

Eg. I purchased fvpl investment 100 and next years market index is 110

(Cost of investment x new index/old index)=new fair value. 

This is what happens. But i would be pleased to know, on the first day the company went into trading, how did it set the price as 100 please? If walters growth intrisic value suggests Po=90 but trading started at 100. Will the company get any profits out of trading? Or will only the NSE manages profits and lossez? Im searching for a good pragmatic approaches adopted. Txs

 

Agreed with above

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