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When shares of stock are sold from one investor to another, they will trade at market value???


When shares of stock are sold from one investor to another, they will trade at market value???

Usually, if sold through a competitive exchange or the NASDAQ, however, if sold through private means, it may reflect private valuations such as when the controlling family of Dow Jones sold to Rupert Murdoch. His value on the firm would be different than what would be dictated by supply and demand alone.

Yes depending on the bid/offer price at a particular time.

Market value is the current price at which a stock is trading on the open market. It is the price at which a buyer is willing to buy a stock and a seller is willing to sell it.

There can also be private stock placements in which securities are sold by contract at a negotiated price instead of placing orders on the open stock market. These typically are done with large financial institutions.

Yes, that is correct. The market value is determined by supply and demand. It is the price of the stock at that one point in time that both buyer and seller agree on.

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