Share price in stock market:
I heard that a share price is governed by demand and supply.In case there is mismatch in demand and supply of some share, who decides to change the current price of a share and by how much
by 
kashif
ANSWERS: 5
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The buyers of the stocks are the ones that determine the price. When a bid is made, if there are few buyers, the seller lets it go low, if there are a lot of buyers bidding against each other, the price goes up.
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You need to think of this one backwards in my opinion. Stocks always trade at a price where supply and demand meet - so in other words, there is technically never a mismatch in supply and demand (in a liquid market). However, if you want to think of it that way, excess supply means excess sellers and the price will go down. Excess demand means excess buyers and the price will go up. Personally, I dont like the 'supply-demand' way of thinking about it -- but perhaps the above helps?
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Mr. Market decides. He's pretty bipolar and sometimes is generous with how he values a company, but he can also be very irrational sometimes and quickly lower the value he believes the company to be worth. Just to let you know. That was a metaphor, a poor one at that. There might be a Mr. Market somewhere out there, but he has nothing to do with this. I doubt he's bipolar if he exists.
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Mr. Market. He's bipolar and often changes his mind with how he values companies. Eventually he gets it right though. Disclaimer: This is a metaphor. There is no Mr. Market, and if there is...he's probably not bipolar.
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If their is a mismatch and the seller does not get a buyer he would sell for less and this will lower the price. However if the seller does not change then the seller will buy at a higher price and this will raise the price. If you phone a broker and you are offering too low a price for a stock he will tell you that their is a seller that is selling at a higher price and if you want to buy at that price.
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