Can someone help explain how the “market price” is calculated? via /r/wallstreetbets #stocks #wallstreetbets #investing


Can someone help explain how the “market price” is calculated?

I'm pretty new to stocks and the stock market so please excuse me if this is a goofy question. With every transaction or every few seconds, the market price for a stock changes. Let's say that I purchase 10 shares of Amazon right now. What algorithm/formula is used to calculate the new market price? I'm saying this because I want to simulate my own mini version of a stock market (no options or anything just basic buy and sell) and in order to do so, I need to know how the market price is changed with every purchase. The same question goes for selling. If an individual is selling 5 shares of Amazon, and the "demand" is less, how does the market price change?

Submitted August 02, 2022 at 11:59PM by YMA487
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