Hi there,

I've been trying to learn more about the stock market and I have a (basic) question about the way price changes of stock.

I am aware there are many traders buying/selling stock all the time. I don't understand how the pricing system of the stock works. For example: say i were an bank trader and I were to buy 1million shares from another bank trader. How would this affect the price?? Since surely the supply in the market place is the same (the stock is just being transferred from one trader to the next). And the stock is being both bought and sold at the same time (as one trader sells the stock and the other buys the stock). So how does the price of the stock change?

Would appreciate some help.

Supply and demand - when there are more shares of a company available than are being actively bought, sellers reduce their price - conversely, when more people are looking to buy than sell, seller raise their price.

That's the theory, anyway.