XEL

Why is a Stock's Price so important?

The price at which we buy or sell a stock is what makes us money and the stock market, and knowing the direction of the price is helpful. Each stock represents ownership in a company, but the price action of the stock, or its trend (technical analysis), also offers insight; this tells us where buyers and sellers are making decisions.
Share Price can also be used to find a company's total market value, as represented by market capitalization by multiplying the price by the number of shares outstanding.

Technical Analysis and Stock Price:

By reviewing a stock's price history we can usually see exactly where buyers and sellers have made decisions. These are typically at relative peaks and valleys in the stock price chart, and this is a good starting point for initial technical analysis observations.