Thursday, February 15, 2007

Share price determination

Ultimately, at any given moment, an equity's price is strictly a result of supply and demand. The supply is the number of shares offered for sale at any one moment. The demand is the number of shares investors wish to buy at exactly that same time. The price of the stock moves in order to achieve and maintain equilibrium.

When buyers outnumber sellers, the price rises. Eventually sellers enter, and/or buyers leave, achieving equilibrium between buyers and sellers. When sellers outnumber buyers, the price falls. Eventually buyers enter, and/or sellers leave, again achieving equilibrium.

Thus, what a share of a company at any given moment is determined by all investors voting with their money. If more investors want a stock and are willing to pay more, the price will go up. If more investors are selling a stock and there aren't enough buyers, the price will go down.

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What is Equity Investment

Equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and funds in anticipation of income from dividends and capital gain as the value of the stock rises. It also sometimes refers to the acquisition of equity (ownership) participation in a private (unlisted) company or a startup (a company being created or newly created). When the investment is in infant companies, it is referred to as venture capital investing and is generally understood to be higher risk than investment in listed going-concern situations.

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Equities in Malaysia - Malaysian Stocks Market (Bursa Malaysia)

Equities in Malaysia are traded under Bursa Malaysia or formerly known as Kuala Lumpur Stock Exchange (KLSE). Malaysia Equities have benefits from China Stocks Market Boom. There are numbers of Companies in Malaysia joint ventures or supply raw materials to China. Malaysia is the largest exporter of Crude Palm Oil (CPO).

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