What determines the share price of a company?

The sale price of any product in a free market is determined by what a buyer willing to pay a seller. In the case of ownership of shares of the same is based on a combination of earnings (profits) and the expectations of dividend payments. This relates to us in the term P / E - the price (stock) to earnings.

For example

XYZ Company has a share price of $ 20.40 and you have $ 1,000 to invest ... Therefore the number of shares you get at that price? (49. Actions) ...If company XYZ price falls, the value of their shares fall...If the price rises, the value of their shares will increase...Shares X Price = Value