A stock price is the price of a single share of stock of a company. The price of a share indicates what the market – made up of buyers and sellers – thinks the current value of the company is. It represents the price at which the stock will trade.
How much is a dividend per share?
This investor owns 100 shares that all pay a dividend of $4 per share (100 x $4 = $400 total). Assume that the investor uses the $400 in dividends to purchase four more shares. The price would be adjusted on the ex-dividend date by $4 per share to $96 per share.
What is important about understanding stock prices?
What is important about understanding stock prices is that stocks are not like any other product or commodity we buy. The only thing the price of a share in a company and the price of a consumer good have in common is the unit of measurement in which they are expressed.
What is a stock price agreement?
It represents the price at which the stock will trade. Put another way, it is an agreement of the price between the buyer and the seller of the stock – it is both the highest price that a buyer is willing to pay and the lowest price at which a seller is willing to sell.
