Stock shares represent ownership in a company. When an investor buys a share of a company's stock, they are buying a piece of the company. This may entitle the shareholder to a portion of the company's profits, in the form of dividends, as well as the right to vote in elections for the board of directors. The value of a company's stock is determined by the ongoing order flow that happens on an exchange. Market participants use an exchange as an ongoing real-time auction and the last traded price represents the current price at any given instant.  Investors justify paying a given price for stocks through a variety of factors, including the company’s current financial performance, future prospects, industry trends, and overall investor sentiment.