One thing you probably see regularly on the front page of newspapers Or in electronic media headlines is the numbers showing ups or downs in the SENSEX value.
But people never bother to know what this word actually means until they come across stock investing. But meaning and calculation of SENSEX are quite simple, let me explain you step by step.
There is a very commonly asked question by beginner investors. Beginners often ask questions like, how share prices change on daily basis? Why share price change? Or, who decides the price of a share at a particular moment?
The simplest answer to all these questions is that the price of a company’s share is decided by supply and demand of that stock in the secondary market.