Glossary
Definition
Stock Price
The price at which a single share of a company trades on a stock exchange.
A stock price reflects what buyers are willing to pay and sellers are willing to accept for a single share of a company at a given moment. Stock prices are determined by supply and demand on stock exchanges. They fluctuate continuously during trading hours and are the primary driver of billionaire net worth changes day to day.
Frequently Asked Questions
How does a stock price affect a CEO's net worth?
If a CEO owns 5% of a company and the stock price doubles, their net worth from that stake also doubles. For billionaires who hold large undiversified stakes, even small percentage moves in stock price can mean billions of dollars gained or lost.