A stock price reflects the value of an investment in a company. This is determined by dividing the total value of the company by the total number of shares issued. The fluctuation in the market is mainly determined by supply and demand. Corporate data will also have a significant influence on stock value.
It is important to remember that when you enter stock CFD trade you don’t buy the stock itself but instead agree a contract with the broker to settle the difference in value between the entry and exit price of the Stock. With CFDs you can sell shares as easily as buying them, allowing you to take advantage of price moves even in a falling market.
Let’s assume that Coca Cola (stock) was trading at a price of €36.195 and in sum, the Coca Cola Company has issued 4.39 billion shares. This is the maximum number of shares available for purchase. If one stock is worth € 36.195, then the entire Coca-Cola Company will be worth a total of €158.9 billion.
Apple presents their new products at the beginning of September. Both on the official “Announcement Day”, and on following days, the stock price of Apple tends to be volatile. The customers process the impressions and form an opinion as to whether the new products are good or bad. A sensational release is therefore very likely to push APPL share prices higher. On the contrary, a disappointing release will dampen demand for the product and can push APPL lower.