why do some share prices change every few mins, and not others?

longwalks1

New to share dealing but am watching a few companies, on large pharma company i watch their price changes every 15 minutes or so, yet another clothing/fashion one will stay stagnant for a day or more, and the update time stays at yesterdays date, just wondered why this is?

turbobob

What companies are you referring to?

Large companies (say the top FTSE100 constituents) prices change continuously according to the buy and sell orders that are always in the market. If you had live data you would see the prices changing "tick by tick". With smaller, less traded companies share prices are more dependant on market makers. If there was no news, and no signficant buying or selling pressure in one of these smaller companies in theory a price should stay fairly level..

Loughton_Monkey

britishboy wrote: »

New to share dealing but am watching a few companies, on large pharma company i watch their price changes every 15 minutes or so, yet another clothing/fashion one will stay stagnant for a day or more, and the update time stays at yesterdays date, just wondered why this is?

If you look at FTSE100 shares, then the prices generally change every second. A combination of electronic trading, and huge activity keeps things moving very fast.

Once you go down the scale to the lower volume of shares, there are often no buyers or sellers for hours (or even days) on end. The prices you see will be those arbitrarily set by so-called "Market Makers". The difference (bid/offer spread) for these shares will typically be huge compared to the much more popular and faster moving shares.

Share dealing on very small companies has inherent risks. Imagine you buy at £1 per share, and the sale price was 95 pence. You don't want to lose more than 15%, so set a "Stop Loss" at 85 pence. Far be it from me to cast aspersions, but I am told not to be surprised if - though not a single extra share has changed hands - and though the financial dynamics of the company have not changed one iota - the price jumps down - just for a few seconds - wiping out your stop loss - and then back up to where it was.

Who says making money out of shares is difficult? Depends who you are!!!!!

blinko

due to acitivity and liquidity also supply of information, eg no supply no reason to change position

longwalks1

cheers people

turbobob its GSK and Mulberry shares

purch

why do some share prices change every few mins, and not others?

Well Mulberry are quoted on AIM which has about 4 active participants on a good day. Glaxo Smith Kline are part of the FTSE 100, which tends to get a little more interest.

Mulberry are up about 40% in the last month