• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

Market Value

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Market Value

  • This topic has 1 reply, 2 voices, and was last updated 10 months ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 13, 2021 at 2:08 pm #631456
    HamzaYusuf
    • Topics: 38
    • Replies: 19
    • ☆☆

    In Chapter 15 para 2 states that Market value of a share is effectively determined by the shareholders – it is the price that shareholders are prepared to pay for a share on the stock exchange.

    BUT in your previous lectures you stated that it is the DEALER on the stock exchange that set the price for a share after taking supply & demand level into account.

    I didn’t understand that… Please explain.

    August 13, 2021 at 5:55 pm #631482
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49583
    • ☆☆☆☆☆

    The dealer certainly is the person who fixes the prices, but the price he/or she fixes is whatever investors are prepared to pay coupled with the price at which holders are prepared to sell.

    Think about a trader selling potatoes on the market. If nobody is buying then they reduce the price to whatever people are prepared to pay in order for them to be able to sell all their potatoes. If there is enormous demand then they increase their prices to whatever people are prepared to pay. So it is the customers who determine what price the trader ends up charging.

    It is the same with dealers on the stock exchange. Although it is them who publish the prices from day to day (just as the trader in potatoes does), the price they publish depends on the supply and demand from the investors using them.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • Alistair02 on MA Chapter 1 Questions Accounting for Management
  • AymanR7 on Practice Question Klopp
  • Kyle on Translation of the subsidiary – ACCA (SBR) lectures
  • John Moffat on Discounting, Annuities, Perpetuities – ACCA Management Accounting (MA)
  • Joanne94 on Discounting, Annuities, Perpetuities – ACCA Management Accounting (MA)

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy