What Are You Really Paying For?
- kitsodickson
- Jun 9
- 5 min read
A share price is more than just a number. It’s a snapshot of a company’s health and the market’s expectations. Like slices of a cake, shares represent ownership in a business. Prices rise and fall based on investor confidence, company leadership, and economic forces at home and abroad. Understanding these shifts is key to navigating the market wisely.
1. What is a share price?
A share price is the cost of one piece of a company.
A company is like a big cake, and it is cut into many small slices called shares. If you want to own a piece of that company, you buy a slice. The price of that slice is called the share price. If a cake costs P100, and it is cut into 10 equal slices, that means each slice costs P10 (share price).
2. What makes share prices go up or down?
Share prices change based on what people think will happen to a company in the future.
If people believe the company will do well, maybe make more money, or grow bigger, then more people want to buy its shares. When many people want to buy, the share price goes up.
But if people think the company might struggle or lose money, fewer people want to buy, and the share price goes down.
Other things that can change share prices:
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